It would appear, from trawling through the reports, that Kesa Electrical (the parent of the Comet and Darty chains) is up for grabs. If you happen to have a couple of billion pounds to spare that is.
But it appears that there is continued speculation as to the future of the formerly Kingfisher owned group despite the unanimous rejection of this current bid.
The company, Kesa, which also owns retail chains Darty and BUT in France, said the offer of £3.25 per share undervalued the company and its prospects for the future.
Kesa is the third largest electricals retailer in Europe, with 28,000 staff in nine countries. Comet is the second largest behind Dixons in the UK, with 250 stores and more than 10,000 employees.
Kesa has suffered from fierce competition in the UK and France in recent months. Comet’s sales fell 2 per cent over Christmas compared with last year’s results despite hype that sales were boyant as consumers appear not to be spending following a slowdown in the housing market, a significant increase in utility bills such as the current increases in gas prices and higher interest rates.
Analysts said the likeliest candidates behind the bid were Apax Partners, Permira, Kohlberg Kravis Roberts and PAI Partners.
In the year to January 31 2005, Comet posted operating profits of £52m on sales worth £1.54bn. Analysists predict that the total group profit will be in the region of £148m when the company announces its annual figures.
Investec Securities analyst Matthew McEachran said 325p a share was a reasonable offer but added that an improved offer of 350p may be required to take control.
“325p certainly gets you in the ball park,” he said. “But the share price seems to suspect a price of around 350p, and that could well be the knockout blow.”
Whether the group is ultimately aqured or not remains to be seen as yet, but obviously it is a target at the moment and it doesn’t look as if the drama has quite played out yet.
What the implications are for Comet in the UK has yet to be seen, but thus far many similar retailers such as arch rival Dixons Group who own the Currys electrical chain, have seen share prices increase with speculation of further interest in the sector.