£842m offer for HMV "in right ball-park" say analysts

<p>Analysts have said Permira's revised offer for HMV of &#163;842m is a good price for the company, given the competitive pressure it is under. Nick Bubb of Evolution Securities said Permira's last bid of 190p a month ago was "cheeky" but the revised offer of 210p is "in the right ball-park, given the tough retail market and the competitive threats". </p><p>Analysts said that HMV was today considering the deal since it was nervous of opening its books to Permira and seeing a reduced offer price after a due diligence process. At this stage Permira's offer is a "conditional proposal". Seymour Pierce analyst Richard Ratner said an offer was dependent on whether due diligence leads Permira to either walk away or try to reduce the terms. "This could be a scenario, as HMV is in areas of the market that are extremely competitive, and where margins and sales are under pressure." But Bubb said he expected HMV to "let Permira in the door and the deal to go through".</p><p>HMV's share price has fluctuated today, and stands at 194p, up from 192p at yesterday's close.</p>