Icelanders sound out bid for Singer

SPECIALIST banking group Singer & Friedlander today became the latest British firm to be on the receiving end of bid interest from acquisitive Icelanders as it admitted it was in takeover talks with Kaupthing.

After a rise in its shares, Singer confirmed it was in 'early discussions' with the specialist Icelandic finance group, which could lead to an offer.

A bid from Kaupthing, which already owns a near-20% stake in Singer, has long been anticipated. Shareholders in the company were celebrating, as news of the talks pushed the stock 35¼p higher to 315¾p in afternoon trading, valuing the group at more than £500m.

Under chief executive Tony Shearer, Singer has exited its former broking businesses to focus on niche banking, asset management and wealth management.

Kaupthing, which was set up in 1982, has become an increasingly significant player on London's mergers and acquisitions scene, specialising in advising other aggressive Icelandic buyers in a series of recent deals.

It helped Baugur in its acquisitions of frozen foods retailer Big Food Group and of High Street fashion stores Oasis, Whistles and Karen Millen.

It also advised Icelandic food firm Bakkover on its takeover of prepared foods supplier Geest.