Higher takeover bid for Debenhams urged by shareholders

BRITISH department store chain and bid target Debenhams Plc said yesterday its sales growth was accelerating, outpacing bigger rivals and lending weight to calls from shareholders for a higher takeover price.

Debenhams, which runs 102 stores, including shops in Dublin and Belfast and a planned Cork outlet selling mainly clothing and homewares, has attracted the attention of two private equity groups, one of which has indicated an offer price of about £1.54 billion.

The retailer said talks are continuing with both. Head of retail equities, Mike Felton, at ISIS fund managers, which owns 2.5% of the company’s shares said: “I don’t want to feel as though the company is being given away. I think we would be disappointed with 425p. The business is performing very well; we still believe in its growth prospects.”