Page last updated at 16:39 GMT, Tuesday, 27 May 2008 17:39 UK

Moss Bros takeover move dropped

Moss Bros store

Icelandic investment group Baugur has scrapped its takeover approach for UK menswear firm Moss Bros.

Baugur said recent changes to the make up of Moss Bros's share register meant that the risk to completing the takeover was "unacceptable".

In February, Moss Bros received a 42p-a-share bid approach from Baugur.

Since then a number of groups have raised their stakes in Moss Bros, including Laura Ashley which last week increase its stake to nearly 10%.

"We are disappointed by recent developments that have effectively frustrated our proposed offer, but remain supportive of the management team," said Gunnar Sigurdsson, Baugur Group's chief executive.

"Baugur is keen to continue to work with the board, management and other major shareholders to identify ways to unlock the potential in the business."

In April, Moss Bros reported a pre-tax loss of 1.4m for 2007, against a profit of 5.1m in 2006.

Shares in Moss Bros closed 11.5% or 5.2p lower at 40.2p.




SEE ALSO
Supermarkets hit Moss Bros profit
03 Apr 08 |  Business
Takeover approach for Moss Bros
25 Feb 08 |  Business
Moss Bros issues profit warning
05 Dec 07 |  Business
Moss Bros shares hit by sales dip
08 Aug 06 |  Business
'Difficult' trading at Moss Bros
25 May 07 |  Business
Warm winter hits Moss Bros profit
11 Apr 07 |  Business
Moss Bros warns of profit slide
10 Jan 07 |  Business

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