Icelandic bank builds up UK presence

A key player in recent takeover activity on Irish and British high streets has lined up a £1bn (€1.4bn) war chest for a major deal of its own, it was reported today.

Kaupthing, the Icelandic investment bank that has advised the acquisitive retail company Baugur on a number of deals, is looking to build up its presence in the UK after recently opening a London office.

The Daily Telegraph said interest in a deal increased speculation of a bid by Kaupthing for Singer & Friedlander, the UK investment bank in which Kaupthing has built up a near 20% stake in the last two years.

Among the deals involving fellow Icelandic firm Baugur, Kaupthing has helped it to buy the women’s fashion chains Oasis, Karen Millen, Coast and Whistles.

It is also acting jointly with Deutsche Bank in Baugur’s acquisition of Big Food Group, as well as advising Bakkavor – another Icelandic firm – on its proposed takeover of food group Geest.

Executive chairman Sigurdur Einarsson recently moved to the UK office as part of his company’s efforts to play more of a role in the City of London’s financing and advising of Scandinavian businesses.

He told the Telegraph: “We are very small in the UK, Norway and Finland. They are the three markets in which we want to grow.

“We can, of course, do it through organic growth, which has been very strong in the company over the past few years. We can also do it through acquisitions. We have purchasing power of about £1bn (€1.4bn).”

Singer & Friedlander, which specialises in merchant banking and asset management services, was formed almost 100 years ago and has been listed on the London Stock Exchange since 1987.