Authentic Brands in talks over £300m Ted Baker takeover - report

30th May 2022 15:42

(Sharecast News) - Ted Baker is reportedly in advanced talks with Reebok owner Authentic Brands (ABG) about a potential £300m takeover of the high street fashion chain.

Last week, Ted Baker confirmed that US private equity firm Sycamore had dropped out of the process to buy the group. It said at the time that it had "selected a preferred counterparty to take forward into a process of confirmatory due diligence" but did not give a name.

According to Sky News, ABG is the preferred bidder for Ted Baker and has indicated that it is willing to pay more than 150p a share for the company.

One retail executive told Sky that ABG - which also owns most of David Beckham's portfolio of branded products - was being advised by Bank of America on the talks. Although it is not in formal exclusivity, the executive added that a formal deal could be signed within weeks.

The shares closed up 4.6% at 142p.

AJ Bell financial analyst Danni Hewson said: "It would be an interesting marriage giving the US company a greater toehold in the European market but retail's not exactly in the best place at the moment. Despite this summer boasting a mega-calendar of rescheduled weddings, birthday parties and other social engagements there's concern that continued price pressures will impact consumer demand and eat into profits.

"Ted Baker's board is optimistic about its post-covid future, but the deal said to be on the table values the business at a fraction of what it was worth this time three years ago. A bargain or a steal, that's the question shareholders will have to wrestle with, if and when a deal does finally materialise."