ASOS shares fly on takeover rumour
Is it eBay or Amazon?......or August?
Shares in AIM’s largest company ASOS are up over 15% today following rumours of a takeover approach from a US group. The story goes that Amazon or eBay are be looking at a purchase of ASOS as a way of expanding their clothing offering.
Online clothing retailer ASOS has not enjoyed the best of years. Indeed shares in the Company have fallen by 66% over the last 5 months as news on trading has disappointed. The Company has blamed the strength of sterling which has impacted its higher margin international sales forcing a reduction in profit expectations. Additionally, the Company has had to increase spending on promotional activity. ASOS has stated that it is on its way to achieving its ambition to be the world’s no.1 fashion destination for 20-somethings. Certainly progress towards this goal has been spectacular until 2014. Nonetheless, ASOS still commands…