Further upgrade the likely scenario at HMV

GIVEN the escalation seen in private equity buying in the retail sector in Britain over the past 12 months, it was interesting this week to see Advent, the private equity firm, sell its 7.8% holding in the HMV Group.

What was even more interesting about this share sale was the fact at £1.53 a share, Advent sold its stake for 20% less than the value of the shares when they came to the market in May 2002.

So is this an indication retail shares have moved too far and the prospects for this company are unexciting?