Group ponders fresh WH Smith bid

The venture capital group circling retailer WH Smith today confirmed it was considering a second bid for the troubled high street giant.

Permira’s renewed interest comes a month after it suspended talks with WH Smith because the potential £940m (€1.4bn) offer would have required a substantial amount of cash to bridge a gap in the company’s pension fund.

Reports at the weekend said Permira had since met five banks to discuss funding for a new offer. It is thought the approach could be worth around £850m (€1.2bn).

In a brief statement today Permira confirmed it was considering whether to submit a revised offer.

The company said: “No decision has currently been made on the value of a potential revised proposal, if any is to be made.”

The Permira bid is being spearheaded by former Hamleys boss Simon Burke and Moss Bros chairman Keith Hamill – a former finance director of WH Smith.

The bid interest came after WH Smith announced in April that its high street shops had delivered an “unacceptable” performance as half-year profits plunged 29%.

Fierce competition from supermarkets and internet retailers for its core sales of books, records and DVDs have hit sales hard as the retailer has struggled to hold its once-dominant market position.