British market leading music and entertainment retailer HMV Group plc has rejected a new bid proposal from venture capital firm Permira Advisers Limited. The London-based company today said (March 13) that Permira’s latest offer was too low and that it would not enter into further talks.
HMV confirmed last Thursday
(March 9) that Permira had raised its bid proposal to 210p ($3.62) per ordinary share, valuing the retailer at £842 million ($1.46 billion).
“The board unanimously believes that the revised proposal from Permira continues to undervalue the group,” HMV said today in a statement issued to the London Stock Exchange.
“As such, HMV Group will not be entering into discussions with Permira with regard to the revised conditional proposal.”
HMV earlier rejected a 190p ($3.29) per ordinary share takeover proposal from Permira, which has offices in the United Kingdom, continental Europe, Japan and the United States. That offer, which valued the company at around £762 million ($1.323 billion), was also rejected for undervaluing the group.
Stock in HMV dropped 3.07% to 189.25p in morning trading today.
In its half-year figures to Oct. 29, 2005 (published Jan. 12), HMV Group reported sales down 0.1% to £759.7 million ($1.34 billion), with operating profit down 85% to £2.8 million ($4.95 million).
