HMV joins bidding for UK book chain

The owner of the Waterstone’s chain of bookshops today said it had gatecrashed takeover talks for UK rival Ottakar’s.

HMV said it was in the early stages of discussing a bid that could scupper the plans of the founder of Ottakar’s and other senior executives to take the company private.

Ottakar’s emerged as a takeover target less than a fortnight ago when the company revealed that it was in discussions over a possible management buyout.

Today’s statement from HMV sparked hopes of a bidding war among investors and sent shares in Ottakar’s up more than 5% to value the company at £79.2m (€116.1m).

The interest comes despite tough conditions facing the book market as supermarkets undercut established high street chains with discount deals on best-sellers.

Consumer spending is currently weak and competition from online retailers such as Amazon has been growing as they are not saddled with high rents from operating a store portfolio.

Retailers including WH Smith and Books Etc owner Borders have also been mentioned by analysts as potential bidders, but many believe a deal for Ottakar’s does not fit in with their current business strategies.