Singh ready to pay more for New Look

NEW Look founder Tom Singh has tabled an increased offer to take the discount fashion chain private and is in discussions with the board.

Singh first made an offer of 330p a share at the end of August, but the company's non-executive directors turned it down.

He has now raised his offer to about 350p, valuing the store chain at £700 million, and is holding talks with the board led by chief executive Stephen Sunnucks.

Singh, a secretive entrepreneur, has remained a consultant to New Look. Together with his family he owns 28% of the shares and his bid for the chain is backed by venture capital groups Apax and Permira and he is advised by Deutsche Bank.

Two weeks ago, New Look reported a four% drop in sales in the first half of the year, though business has picked up over the past few weeks as customers have started to snap up the new autumn ranges. Sales have also been boosted by improvements in the stores.

Singh is understood to be keen to take the company private because he believes the market is not rating the shares highly enough.

He is also believed to want to take more of a hands-on role in running the group, whose shares closed at 322p on Friday.