 Permira could be coming back for a second takeover bid |
High Street retailer WH Smith could be about to face another takeover bid from venture capital firm Permira. A previous offer from Permira stalled over demands for a cash injection to plug a gap in WH Smith's pension scheme
Permira's bid vehicle, Jamaica Trading, has now said it is "considering" whether to submit a revised offer.
The firm said no decision had been made on the value of any offer. Reports at the weekend suggested a new bid could be worth about �850m ($1.6bn).
If so, this would be a lower offer than the previous bid of �940m.
Pension gap
Talks between Permira and WH Smith collapsed last month after the venture capital firm said was unlikely to make a bid because of the demands of the WH Smith pension trustees.
The trustees insisted that any bidder must pledge to fill the near-�200m gap in the pension pot before a deal can be struck to buy WH Smith.
WH Smith became vulnerable to takeover after it announced in April that its High Street shops were delivering "unacceptable" results and half-year profits had plunged 29%.
Fierce competition from supermarkets and internet retailers has eaten into its core business which sells books, records and DVDs.
Despite its problems, many analysts think that the retailer, with its 742 well-recognised shops spread across the UK, still has potential.
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