Founder raises offer for New Look

TOM SINGH, founder and largest shareholder of fashion retailer New Look, has bowed to City pressure by raising his buyout offer to 348p a share in cash.

Singh, who owns 28% and is a consultant to the group, initially offered 330p to take the company private with financial backing from venture firms Apax and Permira.

But with institutional investors on the warpath against buyouts, New Look's independent directors have held out for improved terms.

The news pushed New Look's shares to an all-time high of 336p, up 12p, valuing the group at £643m. The group said the terms were now reasonably attractive to warrant more detailed discussions. It has also thrown open its books to the buyout consortium for an analysis that will take up to two months.

However, the proposal has not yet been formally recommended by the independent directors, leaving the door open to rival suitors.

New Look is one of several large quoted companies to receive buyout offers in recent weeks. These include stores group Debenhams and London property developer Chelsfield.