WH Smith talks tough to Permira

WH SMITH has told bidder Permira to make its mind up or walk away. The retailer has persuaded the Takeover Panel to set an 9 August deadline for Permira to launch a bid.

It is now 12 weeks since the private equity firm first approached WH Smith with a £940m proposal.

The books retailer said 'one way or other, we would like this brought to a conclusion'. It allowed Permira access to confidential financial data and arranged numerous meetings.

Talks between the two parties were suspended on 22 June, after Permira admitted that it was 'highly unlikely' to proceed with an offer at its indicated price of 371p.

The chances of it making a bid are receding as the days tick by.

If it does press ahead, it is likely to offer less than 350p. Permira's main hope is that WH Smith's trading is so poor that new boss Kate Swann will find it difficult to refuse.

Permira is holding talks with the pension trustees to try to ensure that it will not have to inject a huge amount of cash if the deal goes ahead. WH Smith fell 1 3/4p to 317 1/2p.