La Senza in takeover talks

La Senza, the troubled lingerie retailer that has issued a series of profits warnings in the last year, confirmed yesterday it was talks with "a number of parties" that could lead to an offer for the company. Ann Summers, the retailer of raunchy underwear and sex aids, is thought to be one of the companies involved.

Shares in La Senza, priced at 150p when the group came to the market in 1996, closed 8.5p higher at 25.5p. However, some analysts suggested an offer might have to be pitched at up to 40p to be successful.

La Senza has been a disastrous performer since coming to the market in May 1996. Its rapid store opening programme proved unattainable due to rising rents and competition for sites and its trading has been below expectations.