HMV, the book and music retail chain, is preparing for a 200p-a-share revised bid this week from Permira, the private-equity group. Martin Clarke, the Permira partner leading the bid, hopes to persuade the firm’s investment committee to increase its 190p-a-share bid when it meets this week. Permira’s initial offer was rejected by the HMV board, which claimed it undervalued the business.

City analysts believe that any offer will have to be at least 200p a share — with a number arguing that any bid below 210p-a-share will be rejected by institutional shareholders. The American-based value investor Brandes, one of the group’s largest shareholders with a 9.3% stake, has recently increased its stake, paying 192p a share.

Loss adds to drug firm’s troubles

THE battle for control of SkyePharma will intensify this week when the drugs company releases a trading statement that is expected to indicate it lost more than £30m last year. A “warts and all” assessment of the firm’s portfolio is also likely to reveal a delay in the commercialisation of DepoDur, a morphine-based painkiller. However, the company will argue that it is continuing to make progress with products such as Flutiform, a potential blockbuster treatment for asthma.

Rebel shareholders, led by North Atlantic Value (Nav), seeking to displace Jerry Karabelas as chairman will make their case to 17,000 small investors who could determine the outcome of a shareholder vote. Christopher Mills, the JO Hambro fund manager behind Nav, urged small shareholders to get in touch with him to hear the case against Karabelas.

Club puts skids under Silverstone plan

THE future of a planned £400m development of Silverstone is up in the air after a meeting of the British Racing Drivers’ Club last week failed to back the plan.

The BRDC owns the famous motor-racing circuit, the home of the British Grand Prix. Its board of directors has chosen St Modwen, the property group, and Northern Racing as its partners for the development. Last week’s extraordinary meeting was held so that the 500 voting members could approve final negotiations.

Heads of agreement include St Modwen being granted a 150-year lease and financing and constructing new buildings and facilities required by Formula One Management (FOM) if Silverstone is to retain the British Grand Prix.

But the meeting did not back the plans. A motion of adjournment was passed, on the ground that those voting by proxy had done so with incomplete information.

Subsequent discussions showed it was clear that there was considerable opposition to the deal. One member described the 150-year lease as “a giveaway”.

£500,000 payoff for former MFI chief

JOHN HANCOCK, the former MFI chief executive, is to get a payoff of more than £500,000 despite a record loss at the group’s UK retail division. Hancock was ousted last October after the troubled retailer issued its fourth profit warning in just over 12 months, wiping hundreds of millions of pounds off its market value. MFI is due to announce final results on Tuesday. City analysts expect the UK retail division to have made a loss of up to £90m. Overall, the group is expected to have made only a small loss of about £5m, boosted by Howdens Joinery, its successful builders’ merchant subsidiary.