Weston nears deal for Brown Thomas

BROWN THOMAS owner Galen Weston is closer to completing his £598 million bid for department store group Selfridges after receiving more acceptances from shareholders.

Oxford Acquisitions, Mr Weston’s bidding vehicle, now owns has agreed to buy 29.43% of Selfridges, and has received acceptances for its offer from shareholders owning 53.37%. The offer has been extended until Monday, Oxford Acquisitions said.

Mr Weston outmanoeuvred a rival bid from property businessman Robert Tchenguiz, who withdrew his initial takeover offer for the group.

Mr Tchenguiz said the decision by his company, Aletheia Partners, and its consortium of investors had been made “in light of the continuing uncertainty regarding the general retail trading environment”.

Selfridges is opening a shop in Birmingham and has plans for others in cities including Glasgow, Bristol and Newcastle as it seeks eight British stores.

Selfridges has experienced a renaissance in its fortunes under former chief executive Vittorio Radice since its demerger from the Sears retail empire.

Selfridges is one of a number of famous high-street names, including Debenhams, House of Fraser and Hamleys, to have received takeover approaches in recent weeks.

Mr Weston has said Brown Thomas will continue to trade under its own name and operate separately from Selfridges.

The only time when the two groups might combine was if there were particular buying opportunities, she said. They might also share knowledge from time to time, she added.

The Brown Thomas group has expanded and now has stores in Dublin, Galway, Cork and Limerick. According to the last set of accounts (for the year to February 2002) Brown Thomas Group had an annual turnover of 222 million and pre-tax profits of 17.8 million.