L'Oreal eyeing up Body Shop bid
L'Oreal eyeing up Body Shop bid
Also In The News
|
Julio Cruz's 86th minute goal helped Inter Milan come from two goals down to draw 2-2 away to Ajax in the Champions League. |
Thursday, 23, Feb 2006 03:28
The world's largest cosmetics firm, L'Oreal, has admitted that it is considering a bid for Body Shop after speculation had seen the high street retailer's shares soar.
London-listed Body Shop's shares have risen to a 14-year high over the past 48 hours, with the retailer admitting yesterday that it knew of "no reason" for the movement.
This statement of uncertainty has prompted L'Oreal to publicly state its interest in a possible offer for Body Shop, although the French cosmetics giant stressed that no offer had been made.
"L'Oreal notes the recent movement in Body Shop International's share price," a L'Oreal statement said.
"L'Oreal’s management is continually evaluating a wide range of strategic alternatives that may add value to its shareholders including a possible offer for Body Shop.
"However, no decision has been made regarding any offer, L’Oreal's board has not been consulted and no approach has been made to Body Shop."
Body Shop is yet to comment on L'Oreal's admission of interest.
The retailer, established by pioneering female entrepreneur and environmentalist Anita Roddick in 1976, issued a profit warning in January and the Roddick family, its largest shareholders, have reduced their stake over the past 18 months, suggesting that they may be amenable to a sale.
L'Oreal, which manufactures a wide range of best-selling cosmetic products under its own brand as well as others, including Ambre Solaire and Lancome, last week reported a 37 per cent surge in annual net profits, totalling €1.97 billion (£1.34 billion).
Body Shop shares stabilised slightly this afternoon after rising to a high of 274p at 12:45 GMT, standing at 266.50p at 14:45 GMT, up 19.50p on yesterday's closing price.