City says Asos a takover target

 
Kasmira Jefford
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ASOS shares soared nearly 15 per cent yesterday after analysts at UBS said the troubled online retailer was “ripe” for a takeover, with rival Amazon the most likely suitor.

The company, which has issued three profit warnings in the past seven months, has been subject to previous takeover speculation, with eBay and Amazon cited as the most likely trade buyers because of their expanding clothing arms.

UBS said in a note yesterday that”significant value” could be added to Asos if it was combined with a larger company, estimating that Amazon could pay £50 per share for the online retailer.

“We think an acquisition of ASOS would increase the strength and number of brand relationships and give access to a fashionable, low price own label offering,” UBS’ Adam Cochrane said.