Firms eye bid for jeweller Signet

The UK's largest jewellery retailer, Signet, has become the focus of a possible takeover bid.

Private equity firms Apax and Kohlberg Kravis Roberts have admitted they are considering a joint offer for Signet.

Shares in Signet had soared on Thursday morning after a report in the City AM newspaper said Apax and KKR were preparing a £2.3bn ($4.3bn) offer.

Signet has 591 shops in the UK, where it owns the H Samuel and Ernest Jones chains, and 1,221 stores in the US.

A statement by Apax Partners said that it had been jointly preparing an analysis of Signet with KKR, which also included the possibility of an offer for the firm.

"No decision as to whether or not to progress with an offer has been made and as a consequence, there can be no assurance that any offer for the company will be made," Apax added.

Sales up

Signet said it had noted the statement from Apax, but added that it had not received any bid approach.

The jeweller also unveiled its second-quarter results, showing that group like-for-like sales - which strip out the effect of store openings and closures - rose by 7.9% in the 13 weeks to 29 July period. Total sales rose by 10.5% to £390.9m.

Shares in Signet closed 15.25 pence, or 15%, higher at 116.75p

In June this year, Signet admitted it that had held merger talks with US firm Zale Corporation, but the discussions came to nothing.

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