Preferred bidder for Ted Baker pulls out of acquisition process

Shares in high street fashion chain Ted Baker slumped by more than a fifth on Tuesday morning after the preferred bidder for the company pulled out of the acquisition process.

In an update on Tuesday, Ted Baker said the withdrawal of the bidder was not connected to the due diligence process, but it stopped short of offering any further explanation.

“The board was informed by the preferred counterparty last night that it did not intend to proceed with an offer for the company,” Ted Baker said in the update.

The board will now consider other offers it received in late May and “determine whether to proceed with any of those proposals”.

“There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made,” the company said, adding that it would make further announcements if matters progressed.

Shares in Ted Baker fell 22 per cent to 106.8p in early trading in London.

In March, US private equity group Sycamore said it was considering an offer for the UK company, but Ted Baker’s board rebuffed the bid within a week because it said its shares were worth more than the New York investment group was willing to pay.