Moss Bros bid to end Shami saga

MOSS Bros directors may hoist a 'for sale' sign over the business this weekend. Their reply to a new approach by Joe Bloggs jeans tycoon Shami Ahmed could be to invite other bids.

At least one other company is eyeing the group, and Moss Bros investors, who have seen the share price double since bid rumours first surfaced last year, are thought to be keen on an offer.

Ahmed's latest bid last week is still not formal, but his price of between 45p and 50p interested some shareholders. '50p is getting nearer the mark,' said one. They are worried that the bid-inflated share price, now 43p, will collapse if Ahmed is again rebuffed or walks away. Next week's results are expected to show that Moss Bros is still struggling.

Finding alternative buyers would keep shareholders happy and allow Ahmed and the Moss Bros board, headed by chairman Keith Hamill, a graceful exit from their present stand-off. Ahmed made his new offer late on Thursday, sending copies of his letter to every board member and to leading shareholders, including the Moss and Gee families, who own 38% of the company.

Moss Bros has so far rejected all Ahmed's approaches. Under a Takeover Panel ruling, Ahmed has until Friday to make a formal bid. He claims financial backing from the Rowland family, headed by property investor David Rowland and his son Jonathan.

Ahmed is also supported by Kevin Stanford, co-founder of the Karen Millen womenswear company. He is cash-rich after a group of Icelandic investors bought a 49% stake in Karen Millen for £26m last October. Stanford is expected to take a seat on the board if Ahmed buys Moss Bros.