HOUSE OF Fraser is planning to float on the London Stock Exchange after talks with French rival Galeries Lafayette failed to secure a sale.
A source close the negotiations, said the owners of the department store chain felt they could get a better price for the company by floating on the open market.
The float could raise upwards of £350m and comes on the back of a mini-frenzy in London’s new issues market which has seen firms like Merlin Entertainments, Royal Mail and Infinis roar away to successful initial public offerings.
Galeries Lafayette was in talks to acquire House of Fraser, and had exclusivity over a deal until the end of this month.
House of Fraser is 20 per cent owned by chairman Don McCarthy, with the majority – 49 per cent – owned by a host of Icelandic banking figures.
House of Fraser declined to comment last night.