Home Retail Group (LON:HOME) shares jumped this morning as a rival offer was launched for the Argos owner by South African company Steinhoff.
Steinhoff’s offer of 175 pence per share, offered late on Friday, is well above the Sainsbury’s offer that was rejected by Home Retail last month. Sainsbury’s is now expected to ask for an extension of the Tuesday deadline in order to consider launching a competing offer against Steinhoff – a tough competitior who owns both Bensons for Beds and Harveys. The rise in share price has been seen by analysts as a positive market reaction to the offer.
Sainsbury’s were hoping to acquire Argos in an attempt to widen the supermarket’s market share by including Argos’s home retail selection, creating the UK’s largest general merchandise retail business. Whether Sainsbury’s will make another bid remains to be seen.
Home Retail is currently trading up 13.02 percent at 173.60 pence per share.