DSG is understood to be bidding for Dabs.com through its PC World subsidiary, headed by Kevin O’Byrne, who also serves as the group’s finance director.
Deloitte, which is handling the sale for Dabs.com’s founder and sole shareholder, Dave Atherton, has put a price tag of at least £90m on the company.
According to the latest accounts filed at Companies House, Dabs.com made a pre-tax profit of £5.7m in the year to March 31, 2004 on turnover of £196.9m.
DSG’s interest in the business reflects a renewed appetite among big British companies for dotcom assets. ITV, Britain’s biggest commercial broadcaster, acquired Friends Reunited last year in a deal that could be worth up to £170m, while Emap, the media group, bought the online fashion site Worth Global Style Network for £140m.
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DSG’s core retail businesses have been hit by rising high-street rents and falling margins amid stiff competition from supermarkets and online rivals. This month DSG announced that its underlying interim pre-tax profits had fallen 20%. However, chief executive John Clare said trading had been boosted by the popularity of digital products such as MP3 players, cameras, flat-screen televisions and games consoles.
Race track picks development partner
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SILVERSTONE, the home of British motor sport, has provisionally selected St Modwen Properties as its partner to develop the site, ending years of uncertainty over the future of the Northamptonshire circuit. The 500 members of the British Racing Drivers’ Club, Silverstone’s owner, will vote on the plans at an extraordinary meeting to be held on February 22. Silverstone has been plagued by ownership changes and public rows about the investment needed to bring its facilities into line with modern grand prix circuits.
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BA spurns pilots over pensions
BRITISH AIRWAYS has rejected a request from the British Air Line Pilots Association (Balpa) to make a presentation on pensions to a crucial board meeting on Tuesday. BA faces a potential £2 billion deficit in its pension fund, and directors are expected to be updated on options to fund the shortfall at the meeting. Balpa’s general secretary, Jim McAuslan, said he had written to the company asking for an opportunity to speak to directors to give the union’s view on the pensions crisis.
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Fund backs concert promoters
IMPRESARIO Harvey Goldsmith is part of the investment team at Edge Performance, a new venture-capital trust that is seeking to raise £30m. The fund will invest in concert promoters and live-event companies. Edge has already set up agreements with a British subsidiary of Anschutz Entertainment Group, and SJM, a leading British concert promoter.
The board members of Edge Performance include the former Emap chairman Sir Robin Miller, Frank Presland, who is Sir Elton John’s manager, and David Glick, an entertainment lawyer.