Oasis chiefs set for Baugur bonanza

YET another High Street name looks set to come under new ownership with news today that fashion chain Oasis is in talks with the deal-hungry Icelandic retailer Baugur.

The deal, which could value Oasis at more than £150m, will make multi-millionaires of the top management team, headed by Derek Lovelock. They bought the business little more than two years ago and together own 12.75% of the shares. If the takeover talks are successful, that stake could be worth as much as £20m.

The buyout was backed by PPM Ventures, the private equity arm of Prudential, which now controls the 160-shop fashion chain. There were complaints from some analysts at the time that the £54m buyout price was too low.

Baugur has long been keen to break into the fashion market in Britain. It was close to clinching the purchase of Top Shop and Top Man from Philip Green when the Monaco-based billionaire took over Arcadia last year, but the deal faltered when Baugur became embroiled in a fraud investigation at home.

The company made a profit of £55m on its Arcadia shares and has built stakes in several retailers, including House of Fraser, Big Food Group and Mothercare.

Earlier this year Baugur took over the famous toy store group, Hamleys, which it won after a lively battle with Tim Waterstone, paying a price of £59m. At the time, Baugur made it clear it was keen for further acquisitions.

Talks with Oasis are said to be well advanced and firm news of a deal could come within a couple of weeks.

Oasis was bought from the receivers by brothers Michael and Maurice Bennett in 1991. The Bennetts were the men behind the Warehouse fashion chain, which they founded together with designer Jeff Banks in the 1970s, later selling it to Freemans.