HMV up for sale?

HMV Group has been on the sidelines recently as far as news is concerned. There has however, been much whispering going on behind closed doors it seems.

With results out this week looking to be dismal there doesn’t seem to be much going for the company – yet in the last few weeks the stock has gained significant ground, rising by more than 15% in the last 3 weeks.

So what’s going on? Well there are two schools of thought, first is that the company is likely announce a sell off of significant chunk of its business based in the far east, Japan to be specific. This sale could raise up to £75m.

At the same time rumours are starting to lift again that the company is ripe for buyout. Last year Permira offered a rumoured 210 per share. 

HMV is also rumoured to be cutting back 10% of the 330 stores its Waterstones group owns in an effort to cut costs.

The figures expected this week will not reflect recent cutbacks, which have been too recent to affect short term results.

The company has hired N.M. Rothschild & Sons Ltd. to advise the company on how to refinance its debt, the Sunday Express reported, citing a person close to HMV.

With the current whirlwind of M&A sweeeping through the city, speculation is that HMV may be ripe for an overhaul.