Finnish department store Stockmann bids for fashion chain Lindex

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Monday, October 1, 2007

Sweden-based Nordic fashion chain Lindex AB has been offered 7.9 billion kronor (€861 million; US$1.2 billion) in a takeover bid by Stockmann Oyj Abp, a Finnish department store chain based in Helsinki.

The board of Lindex is said to have recommended acceptance of the deal, which significantly outdid a 7 billion kronor (€763 million; US$1.08 billion) offer by rival KappAhl Holding AB, another clothing vendor, in August. The board had recommended shareholders reject that offer as too low.

Stockmann's increase to 116 Kroner from KappAhl's 102 Kroner per share was said by Lindex to be a reasonable price. KappAhl have withdrawn their offer as a result.

Lindex Chairman Conny Karlsson said "We believe that Stockmann actively can contribute with their experience and know-how in order to accelerate our expansion in Eastern and Central Europe.," The chain is one of Europe's biggest fashion chains, operating 350 stores in Sweden, Norway, Finland, the Czech Republic, Estonia, Lithuania and Latvia.