So just because the Competition Commission approved HMV’s proposed takeover of Ottakar’s, doesn’t mean that this will actually happen. The Scotsman reports that WHSmith is very serious about putting its hat in the ring — at a lower price.
They are forecasting a lower bid in the region of 350p (lower than HMV’s original 440p bid), putting a £77m price tag on Ottakar’s, whose shares closed up 23.25p on Friday at 348.25p.
Retail analyst Richard Ratner said: “HMV will renew the bid when the Competition Commission makes its announcement in May. The question is at what level, and whether WH Smith comes in. I don’t believe stories about £3, but it will be about £3.50. They (HMV) will lower their bid without a doubt, unless there is a huge contest between them and WH Smith which is still likely.”