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Last Updated: Monday, 20 March 2006, 15:20 GMT
HMV suitor Permira abandons bid
HMV store on Oxford Street

Shares in HMV Group have dropped nearly 4% on news that private equity firm Permira has pulled out of talks to buy the music retailer.

Permira said it was "disappointed" at last week's decision by HMV to reject its 842.7m ($1.47bn) offer and would no longer be bidding for the firm.

The 210p a share offer followed an earlier bid of 190p.

HMV has been struggling against falling sales and profits recently amid tough conditions on the High Street.

"Permira is disappointed at the response of the board and believes that the revised 210p per share proposal represented a compelling proposition for the shareholders of HMV," said Permira in a statement.

"Accordingly, in light of the board's response, Permira has decided not to proceed."

Shares in HMV closed down 7.5 pence, or 3.9%, at 183p on Monday.


SEE ALSO:
HMV rejects second bid approach
13 Mar 06 |  Business
HMV considering 842m Permira bid
09 Mar 06 |  Business
Retailer HMV rejects bid approach
07 Feb 06 |  Business
HMV shares surge on takeover move
30 Jan 06 |  Business
HMV bid for Ottakar's gets review
06 Dec 05 |  Business
HMV sees few signs of improvement
28 Sep 05 |  Business


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