Jury out on Ahmed bid for Moss Bros

DOUBTS are growing over whether fashion entrepreneur Shami Ahmed will ever launch a formal bid for Moss Bros. City sources say he has not secured financing for the deal. Ahmed's aides insist banking facilities are in place, but are conditional on access to the retailer's books.

Ahmed, 39, who has been stalking the men's clothing chain for months, said he can fund a bid of at least 40p a share. His associates insist that Bank of Scotland - part of HBOS - has agreed to fund the deal. Bank of Scotland said it has 'had some discussions with Mr Ahmed'. But sources said no financing deal has been agreed.

Moss Bros fell 2p to 38p on Tuesday night, valuing it at £34.6m. It refuses to give Ahmed access to its books because it does not believe he has the cash for a deal.

Ahmed, founder of the Joe Bloggs jeans empire, is seen by many as 'all mouth and no trousers'. Three years ago, House of Fraser and Austin Reed shares soared on reports that he was plotting to take them over. The shares came off when a bid did not materialise. Ahmed later said he had planned to bid for both companies, but decided against it.

In 1998, reports that Ahmed was prowling womenswear group Jacques Vert caused the shares to double in a week. But a deal never happened. Ahmed is not short of cash. Yet hardly any of his 5.42% stake in Moss Bros was bought in the open market.

Rather than shell out £1.5m for the holding, his quoted vehicle Legendary Investments secured voting rights through a complex-deal with broker Cantor-Fitzgerald at a likely cost of less than £300,000.

Ahmed's personal wealth is estimated to be at least £50m. But it is impossible to dissect his business interests because they are registered in offshore tax havens.