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LONDON, United Kingdom — Asos Plc shares rose as much as 17 percent following a newspaper report that the U.K.'s largest online-only fashion retailer is the subject of takeover speculation.
The shares rose as high as 2,744 pence in London for the biggest intraday gain since January 2012. They were up 14 percent at 2,680 pence as of 12:06 p.m., paring the London-based company’s decline this year to 56 percent and giving it a market value of 2.2 billion pounds ($3.6 billion). Yoox SpA, an Italian rival, rose as much as 6.4 percent in Milan.
The Guardian newspaper cited market rumors that the likes of EBay Inc. may be looking at the business, with a price of as much as 50 pounds a share mentioned. “We don’t comment on market speculation,” Matthew Smallwood, a spokesman for Asos, said by phone. An EBay official wasn’t immediately available to comment.
Asos has suffered setbacks this year, cutting its profit outlook twice amid weakening sales growth and suffering a fire at is main warehouse in northern England in June. At the same time, investor interest in Europe is turning toward e-commerce as German company Zalando SE, Europe's biggest online shoe and fashion retailer, may announce an initial public offering as early as this week, people familiar with the matter have said.
By Celeste Perri, Katarina Gustafsson; editors: Jacqueline Simmons, Robert Valpuesta.
