Rumours around Rank Group

As reported by The Guardian, the parent company of Blue Square could soon receive a 330p-a-share bid from a private equity group.

The rumours first surfaced two weeks ago when ABN Amro issued a research report that highlighted why Rank Group might be the target of a leveraged buyout, upgrading its recommendation to “buy” and setting a 355p target price.

The Dutch broker said Rank had the financial strength to borrow 750m and return the money to investors by way of a share buyback.

However, ABN Amro believes bid approaches are only likely if Rank manages to sell or demerge its Deluxe film business.

Rank closed 3% higher at 281p.