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WH Smith opens books in gesture to bidders.(News)

Music Week

| May 01, 2004 | Williams, Paul | COPYRIGHT 2004 CMP Information Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

WH Smith has invited former Virgin Entertainment Group chief executive Simon Burke to study its books, as he prepares a bid for the beleaguered High Street retailer.

Burke, along with Moss Bros chairman Keith Hammill, have joined forces with venture capitalists Permira to make an offer for Smiths which is believed to value the chain at about 940m [pounds sterling].

Both men have a history with WH Smith. Burke was on the board of the company in the mid-Nineties, when he ran Virgin Our Price, then 75% owned by WH Smith. Hammill is the company's former finance director, who made an attempt to buy the company's distribution arm in 2001.

For its part, the retailer last Thursday issued a statement saying that it would allow Permira to look at its books, as it announced a net loss of 84m [pounds sterling] for the six months to February 29 this year. It also revealed it would be soiling its 200 stores in Australia and New Zealand.

WH Smith's newly-hired chief executive Kate Swann has intimated that store space devoted to music ...

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