Allied Carpets agrees to Saint-Maclou pounds 85m bid

THE BID battle for Allied Carpets escalated yesterday when the struggling retailer agreed a pounds 84.5m cash takeover from Tapis Saint-Maclou, the biggest carpet retailer in France and Belgium.

The privately controlled French company is offering 93p per share, a significant premium to the 80p per share bid from Wassall, the investment conglomerate. However, the City was betting on a higher offer as it marked Allied Carpets shares 2.5p higher at 95p. "We are sitting tight" said one major institutional shareholder. "There is no point selling out at this price."

But Allied Carpets suffered a fresh blow yesterday when the Department of Trade and Industry said it was undertaking an investigation into the company. Though it did not disclose the reasons, Allied said it related to "past practices" and should not affect trading or the group's financial position. It is thought the investigation relates to the accounting scandal at the company last year which led to a boardroom clear-out which included the resignation of managing director Ray Nethercott.

Tapis Saint-Maclou, controlled by the wealthy Mulliez family, yesterday disclosed it had acquired 4.4 per cent of Allied Carpets shares. It said the move would create a major pan-European retail group focused on the carpets and floor covering market, trading from around 440 stores in five countries.

Gonzague Mulliez, managing director, said; "We believe significant benefits will arise from the combination of Allied Carpets' brand strength and store portfolio with Saint-Maclou's proven retail skills." The Mulliez family also controls French hypermarket group Auchan and sports retailer Decathlon.

Geoff Brady, the new chief executive of Allied Carpets, said his position had not been discussed.

Meanwhile, Brown & Jackson, the Poundstretcher retailer which originally expressed an interest in Allied Carpets at 50.5p per share, last night withdrew from the fray.