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Russian tycoon makes £43 million Waterstone's bid - report
A woman walks past a Waterstone's book shop in London January 14, 2010.
Credit: Reuters/Suzanne Plunkett
LONDON |
LONDON (Reuters) - Russian billionaire Alexander Mamut has offered 43 million pounds in cash to buy bookseller Waterstone's from struggling entertainment retailer HMV Group, the Financial Times said on its website on Friday.
HMV confirmed it was in advanced discussions regarding the potential sale of Waterstone's but gave no further details in a statement released after the UK stock market closed.
The retailer, which had earlier declined to comment on the FT report, said there was no certainty that any transaction would be concluded.
A source close to the situation told Reuters that Mamut, who owns a 6.1 percent stake in HMV, had been in exclusive negotiations to buy Waterstone's, and although the exclusivity period had ended, he remained in talks.
Other parties had also shown interest in the chain, the source said.
HMV had issued its third profit warning in three months in April, increasing the pressure for it to raise funds by selling Waterstone's or by issuing shares.
HMV stock closed 7.5 percent higher at 10.75 pence, giving the entire business a market capitalisation of about 45.5 million pounds.
Mamut is the major owner of Euroset, Russia's largest mobile phone retailer, which postponed a flotation in April because of market volatility.
(Reporting by Paul Sandle; Editing by Greg Mahlich and David Holmes)
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