Shares in music and books retailer HMV soared 18% today after it said it had received a bid approach. There were reports that private equity firm Permira had hired Merrill Lynch to advise on a deal.
HMV said it had received a preliminary approach, without naming names, and said a further announcement would be made in due course. Permira and Merrill Lynch declined to comment.
Some analysts were surprised that a deal may be on the cards, given HMV's struggle against music downloading and a slowdown in the DVD market. Shares in HMV, which also owns Waterstone's, tumbled earlier this month on news of falling sales during the key Christmas period.
