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Abigail Townsend Sharecast News
30 Jan, 2018 11:49

Activist hedge fund eyes up Waterstones - reports

Hedge fund Elliott Advisors is in talks to buy Waterstones, the British bookseller owned by Russian oligarch Alexander Mamut, according to press reports.

It is understood that Elliott Advisors has been given a short period of exclusivity while the negotiations are carried out.

Neither Waterstones nor Elliot Partners were immediately available for comment. But the price being discussed is thought to be below a previously rumoured price tag of £250m.

Mamut acquired the chain in 2011 from HMV Group. He installed James Daunt, a former investment banker and owner of the independent chain Daunt Books, as chief executive, and he has been widely credited with turning round Waterstones' fortunes. Earlier this month, it announced profits had soared 80% in the full year, from £9.9m to £18m, as non-book items helped drive revenues.

In October, Mamut hired investment bank Rothschild to explore options for the future of the chain, including a possible sale. That was then put on hold until after the traditionally busy festive season.

Elliott Advisors is the UK arm of Elliott Partners, the US hedge fund owned by Paul Singer, a leading activist investor.

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