The retail mega deal is still clearly on the table — Best Buy Co. Inc’s founder floated a buy out offer today and shares of Britain’s Marks & Spencer Group inched up after banks were reportedly evaluating a takeover — but all the interest did little to buoy the sector.
The S&P Retail Index rose 0.2 percent, or 0.98 points, to 626.27 and the Dow Jones Industrial Average also inched up 0.2 percent, or 21.34 points, to 13,117.51. Fashion’s gainers included Avon Products Inc., up 4.7 percent to $15.59; American Apparel Inc., 4.4 percent to 95 cents; Warnaco Group Inc., 4.2 percent to $42.56; Coach Inc., 4.1 percent to $54.84, and Michael Kors Holdings Ltd, 4 percent to $42.85.
Richard Schulze, founder and former chairman of Best Buy, offered to buy out other shareholders for $24 to $26 a share, valuing the electronics chain at as much as $8.83 billion.
And in London, shares of Marks & Spencer Group rose 1.9 percent to 3.48 pounds after The Sunday Telegraph reported that bankers were very tentatively accessing the possibility of a 6 billion pound, or $9.38 billion, takeover.
There’s been a lot of talk about retail dealmaking, but so far it’s been mostly talk with some smaller brands trading hands. However, in conjunction, the Best Buy offer and Marks & Spencer speculation show that big money investors, and their bankers, would still like to pull in a big fish.
Also perking up for the day in Europe were LVMH Moët Hennessy Louis Vuitton, 1.6 percent to 130.20 euros; PPR, 1.5 percent to 125.95 euros, and Burberry Group, 1.2 percent to 13.21 pounds. The euro traded at $1.24 and the pound went for $1.56.
In Europe, Milan’s FTSE MIB gained 1.5 percent to 14,3422.03, as Paris’ CAC 40 increased 0.8 percent to 3,401.56, Frankfurt’s DAX gained 0.8 percent to 6,918.72 and London’s FTSE 100 rose 0.4 percent to 5,808.77.