Debenhams takeover fight looms

BUYOUT king Permira will ignite the £1.54bn takeover battle for Debenhams today by launching a formal 425p-per-share offer for the department stores group.

Insiders revealed that Debenhams' chairman Peter Jarvis will hold a meeting of his non-executive team today to discuss the offer. A decision may not come until Monday.

A source at the retail giant said: 'Once we get an offer the board will sit down and discuss it. It is highly likely this will come through this morning.'

Permira's move comes only three days after Debenhams issued a strong trading statement showing sales growth was accelerating across its stores.

A growing number of analysts believe Debenhams is worth at least 450p per share but Permira is sticking to its original valuation, arguing little has changed in the business since it tabled its indicative offer in May.

This could leave the door open for rival venture capitalists CVC Capital and Texas Pacific, which are working together on a bid of their own with the support of retail tycoon John Lovering.

The bid battle is likely to be shrouded in controversy, given that Debenhams' chief executive Belinda Earl and finance director Matthew Roberts have been allowed to work with Permira on its offer.

The group wants to keep the executive duo in place and bring in former Arcadia chief executive Stuart Rose as chairman.