Latest Bid for Ottakar’s

by Andrew Rosenheim, PW Daily -- Publishers Weekly, 6/1/2006

That offer triggered a referral to the British Competition Commission, which despite united opposition from independent bookstores, the Society of Authors, agents, and many publishers, recently gave HMV the green light to proceed with its takeover efforts. The reduced bid reflects the fact that HMV is attempting to acquire a struggling company – Ottakar’s most recent results show a sales decline of over 8% from the previous year for the 16 weeks up to May 20.

The Ottakar’s board has agreed to recommend the HMV offer to its shareholders “in the absence of a higher offer,” though analysts are divided as to whether such an offer will emerge. W H Smith remains the obvious alternative contender (and arguably would more naturally complement the higher-end stores of the Ottakar’s chain), but Ottakar’s weak recent performance may deter a competing bid.

Ottakar’s troubles in a sluggish retail environment also highlight the larger problems confronting all traditional bricks-and-mortar bookshops in the U.K. Increasingly, the fierce criticism of the HMV bid from the traditional ranks of the British book world seem less relevant, since the real threat to their interests would seem to lie with the new and prospering avenues of selling – online and supermarkets in particular – more than from the conglomeration of traditional retail outlets.