New WH Smith bid on the cards

NEWSPAPER and books seller WH Smith was back on bid alert today as private equity house Permira said it had formed a company, Jamaica Trading, which may put a revised offer to the High Street chain's board.

Permira put a tentative £940m, 375p-a-share bid on the table in April but walked away last month after pension trustees declared the bidder would have to plug a £250m black hole.

Although talks with the board stopped last month, discussions with the pension trustees have continued and sources close to Permira said they had made progress.

This may mean Jamaica coming in with a lower bid of around 340p a share, leaving more cash for the pension fund.

Debenhams chairman John Lovering has joined Jamaica's board as deputy chairman under Keith Hamill, chairman of Moss Bros. Former Hamleys toy shop boss Simon Burke will be chief executive.