Last month, New Look announced that Singh had appointed an adviser, believed to be Deutsche Bank, to review the options for his 28% shareholding in the business. On Friday, New Look’s shares rose from 288p to a record high of 315p on fresh speculation of an imminent bid. The company is now valued at £633m.
The Takeover Panel is likely to place pressure on the firm to make a statement this week clarifying the situation. Singh is expected to say that the strategic review is still in its early stages and that he is considering all options for his stake including using it to launch a bid for the rest of the company. Other options open to him include selling down his shareholding, or simply doing nothing. It is understood that Singh has not yet made an approach to the company about a possible bid.
There has been speculation that the executive directors of New Look, led by chief executive Stephen Sunnucks, would like to stage a management buyout of the business and a number of private-equity houses are said to be looking at the company. However, industry sources said Sunnucks had not decided whether to go for a buyout. He is believed to be on holiday with his family this weekend.
Singh founded New Look 34 years ago with a single shop in Taunton, Somerset. Today the chain has almost 500 stores in Britain and more than 130 in France.