Volatility in equity markets hits plans at New Look, Merlin Entertainments and Matalan
15 February 2010 11:39
Continuing uncertainty and volatility within world equity markets has hit the short-term development plans for some big names in the worlds of retail and leisure. Fashion retailer New Look and Merlin Entertainments, the owner of the London Eye and Madame Tussauds, have both abandoned plans for flotation on the stock market.
New Look had been looking to raise £1.6 billion. "We have made the difficult decision to postpone the initial public offering as a result of the considerable volatility in the equity markets" said Carl McPhail, the company's CEO. "We remain convinced of the strengths of the New Look business and its suitability as a public company. We will re-evaluate our options when market conditions improve".
Meanwhile, Merlin Entertainments, which is backed by private equity firm Blackstone and Dubai International Capital, was hoping to raise £2 billion. However, Blackstone's decision to pull the listing of airline and hotel booking business Travelport because of a lack of interest from institutional investors persuaded Merlin that an IPO was no longer viable.
Similarly, discount retailer Matalan has shelved plans to sell the business after five buyout firms apparently balked at the £1.5 billion price tag. Speaking to The Times, a spokesman for the company said: "I can confirm Matalan has closed down the potential sale process".
None of the private equity bidders are believed to have offered more than £1.3 billion.
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