Shares in Debenhams tumbled 17% on Wednesday as Merrill Lynch, a key investor, bailed out of the UK department store chain after sharp falls in the value of its holding since its flotation. Merrill Lynch Private Equity, one of the three firms behind the buy-out of Debenhams, sold its remaining 6.2% stake at 60p – against the 195p flotation price when the retailer was relisted in May 2006. In FT Alphaville’s view, Merrill’s decision to sell at a low point for the shares remains ‘very mysterious’.

This entry was posted by Gwen Robinson on Thursday, March 27th, 2008 at 5:36 and is filed under Capital markets. Tagged with debenhams, merrill lynch. Edit this entry.