HMV told the London Stock Exchange yesterday that it had been approached by a potential buyer regarding acquisition, although it would not reveal who the takeover bid came from. A statement from the company said: "The board of HMV confirms that it has received a preliminary approach from a third party which may or may not lead to an offer being made for the company".
That statement followed speculation in the weekend press that private equity firm Permira were about to make a bid for the company. However, they have refused to confirm or deny those rumours, and US media have also suggested American investment firms KKR and Blackstone are also considering an offer.
Takeover talk at HMV follows that previously reported admission earlier this month that the company's financial performance in the last year had been disappointing. The group's CEO Alan Giles announced he would stand down at the end of the year, and several senior executives left the company. It is unclear what any takeover would mean for the retailer, which has stores in the UK, Ireland, Canada and the Asia Pacific region, as well as owning Britain's leading bookseller Waterstones.