Signet hit as bid interest cools

Shares in H Samuel owner Signet slumped today as the market reacted to the decision of two private equity firms to opt against a joint bid for the jeweller.

Apax Partners and Kohlberg Kravis Roberts (KKR) announced at the weekend that they were no longer in the running for the group which also owns Ernest Jones.

Signet initially fell almost 9% but recovered some losses to stand 6% lower with a drop of 7p (10c) to 108.25p (160c) in the first hour of trading.

Earlier this month, Apax and KKR said they were mulling a £2.3bn (€3.4bn) bid for the whole Signet group, which has 591 shops in the UK as well as 1,221 in the United States.

However, in a statement released late on Friday they said they had “no current intention of approaching the board of Signet to make an offer for the company”.

Separate reports at the weekend indicated that Icelandic investment firm Baugur and entrepreneur Gerald Ratner could both be interested in making a bid for the UK shops of Signet following the pull-out.

Baugur – which last week agreed to acquire department store chain House of Fraser for £35m (€520.8m) – already owns jewellers Goldsmiths and Mappin & Webb.

Mr Ratner was in control of Signet when it was called Ratners but lost his position following a speech at the Institute of Directors when he called one of his products "total crap".