French Connection shares spike after weekend takeover rumours
Ooh la-la. Shares in French Connection have jumped by 16 per cent this morning after rumours of a takeover bid emerged over the weekend.
The struggling clothing retailer, which has made losses for five years in a row, is believed to be being eyed up by UK and US investors.
Today it opened 7.5 points up at 39.5p per share, from 32.75 on last week's close. At the time of writing, it was trading at 37.75.
It is under pressure from Gatemore Capital, which owns eight per cent of the retailer's shares. Last week it warned that margins were "well below industry average".
Potential buyers could include Neuberger Berman, which owns brands including Ben Sherman, or UK-based Rutland Partners.
Last month French Connection posted an 8.7 per cent drop in sales to £69.2m in the six months to July and failed to improve its finances, reporting a £7.9m loss.
The retailer is currently in the middle of a turnaround plan to get the group back in the black. It closed 13 stores last year, and has plans to shut another 10 this year.