HMV shares surge 25% after bid approach

British music and books retailer HMV has received a takeover approach, sending its shares soaring around 25 per cent to a three…

British music and books retailer HMV has received a takeover approach, sending its shares soaring around 25 per cent to a three-month high of 205p.

HMV shares were already sharply higher after the Financial Timesreported that private equity firm Permira had made a bid approach worth about £800 million (€1.17 billion).

Sources close to the matter said that Permira had hired Merrill Lynch to advise on an approach for HMV.

HMV declined to identify its suitor.