Freeport shares soar 23 per cent on bid news

Freeport, the retail property group specialising in factory outlet shopping centres, saw its shares soar 23 per cent yesterday on news of a possible bid.

Three executives with retail and property backgrounds have formed a management team "with the intention of considering a possible offer" for Freeport, according to a statement yesterday.

However, Freeport said it had received no approach from the buyout team and advised shareholders to take no action. The shares closed at 268.5p, valuing the company at £135m.

The three managers are Iestyn Roberts, a former director of McArthur Glen, a rival operator of factory outlet centres, Chris Howell, a former director of the Falmer and Lee Cooper jeans companies and Nigel Wright, an ex-director of property group Mountleigh Estates. They currently have no connection with Freeport.

Their statement said they "noted the recent rumour and speculation regarding the company". This surprised Freeport, which said it had been unaware of any such speculation. However, it is understood the Takeover Panel requested a statement to be issued after news of the possible bid interest leaked in the market.

Freeport was founded in 1994 and operates six factory outlet centres in the UK. The centres are out-of-town "villages", which top-brand names such as Versace, Nike and Burberry use to clear excess, or out-of-season stock.

The group's shares have been trading at a substantial discount to their asset value of 534p a share. In March Freeport reported an 11 per cent rise in first-half profits to £6m on turnover of £9m.