British retailer French Connection receives takeover approaches

FILE PHOTO: A person walks past a French Connection store in London, Britain, 14 March, 2016. REUTERS/Hannah McKay/File Photo

LONDON (Reuters) – Struggling British fashion retailer French Connection is in takeover talks with two possible suitors, it said on Friday.

The group said it had received one approach from Spotlight Brands in conjunction with Gordon Brothers International and another from Go Global Retail in conjunction with HMJ International Services Ltd.

French Connection said the talks were at a very early stage and there was no certainty an offer would be made, although any offer was likely to be in cash.

The group was a force in the British fashion market in the 1990s but has not been profitable in nearly a decade.

Its shares closed on Thursday at 15.7 pence, giving it a market capitalisation of just 15 million pounds ($20.5 million).

Under UK takeover rules Spotlight Brands and Go Global Retail have until March 5 to announce a firm intention to make an offer.

($1 = 0.7312 pounds)

Source: Read Full Article