Knight Vinke Stake Continues To Buoy Kesa Shares

29th Jun 2010 11:25

LONDON (Dow Jones)--Shares in retailer Kesa Electricals PLC (KESA.LN) continued to rise Tuesday amid speculation activist investor Knight Vinke Asset Management LLC could be pushing for a break-up of the company. At 1012 GMT Kesa's shares were up 2.9% at 126 pence in a lower London market, adding to a 5.1% gain Monday after Kesa announced that Knight Vinke held a 3.05% stake in the company. A spokeswoman for Kesa said the company had not engaged in conversation with Knight Vinke but declined to comment on whether it would now be making contact with its latest shareholder. Knight Vinke could not be reached. Knight Vinke is renowned for its activist stance and is pressuring Italian oil company Eni SpA (E) to spin off its gas pipelines and stake in Snam Rete Gas SpA (SRG.MI) to reduce debt and release hidden value in the company. Knight Vinke's interest in Kesa is not clear, however, as analysts do not view Kesa as a break-up target. But Knight Vinke's stake will put pressure on Kesa management to execute the strategy it presented to the market last week to revamp its struggling Comet stores in the U.K. Kesa, which also operates in France under the Darty brand, faces intensifying competition in the U.K. from DSG International PLC'S (DSGI.LN) remodeled Currys and PC World stores and from U.S.-based Best Buy Inc. which recently launched in the U.K. -By Molly Neal, Dow Jones Newswires; +44 207 842 9358; [email protected] (END) Dow Jones Newswires June 29, 2010 06:25 ET (10:25 GMT)