Mothercare shares fall after potential buyer pulls out

28th Jul 2014 08:23

Shares in mother and baby goods retailer Mothercare sank after a potential suitor confirmed that it was dropping its takeover interest in the group.The stock fell 26.5p or 10.3% to 231.75p at 08:23 in London as Destination Maternity (DM) said it did not intend to make an offer for the UK retailer.Nasdaq-listed DM is reported to have made three proposals to Mothercare's board with the last worth 300p a share, which valued the business at £266m, but Mothercare rejected them as too little. DM said it was unwilling to meet the price that Mothercare's shareholders were demanding.Mothercare said it had not had any contact with DM since June 3rd.Mothercare, which has appointed new Chief Executive Mark Newton-Jones, said: "Mothercare is now fully focused on the company's plan to turn round the UK business and to continue its strong International growth."The board remains confident in the ongoing execution of Mothercare's strategy as an independent company."PW