The board of HMV yesterday told private equity house Permira "you must be flippin jokin" after the investment firm made an offer to takeover the music retailer (well, that might not have been their exact words, but it was the sentiment).
Permira offered 190 pence per share to buy HMV, an offer 3% over the retailer's current share price. However HMV bosses decided within the day that that offer undervalued the music and book chain (HMV own Waterstones too, don't forget). A spokesman for HMV said: "The board has concluded that the proposal undervalues HMV Group. As such, HMV Group will not be entering into any discussion with Permira."
The Guardian says sources at Permira say they won't be increasing their bid for a company that they reckon needs a considerable restructure to compete in this here digital age. But other investment types said HMV was right to knock back the offer, adding that they wouldn't be surprised in Permira does now, in fact, come back with a better deal.