Baugur leads raid on House of Fraser

Icelandic group Baugur was today unmasked as the investor behind the dawn raid on House of Fraser which sent shares in the department store group soaring to an eight-year high.

Fraser today confirmed that Baugur had bought a 9.48% stake in the company yesterday for around £29m (€41.6m) – just weeks after talks between the shop and private equity firm Apax collapsed.

Yesterday’s move prompted a frenzy of bid speculation which sent Fraser shares 8% higher to 135p last night, valuing it at £321m (€461m).

It is the second time in three years that Baugur has taken a stake in Fraser although it sold its previous 10% holding in 2004.

Baugur has built up a retail empire in the UK that includes the Iceland supermarket chain, tea and coffee vendor Whittards of Chelsea and toy store Hamleys. It also has a 10% stake in Woolworths.