Asos: Amazon rumour back in the headlines

By

Matthieu Guinebault

Published
Oct 8, 2014

The British pure player's shares were once again at the centre of rumours of a takeover by Amazon, resulting in a 15.8% hike in its shares on 7 October.

The hike follows speculations by the UBS which considers that Amazon would be the ideal candidate for a takeover and would pay 50 pounds per share. "Amazon intends to increase its fashion and international visibility and is not opposed to the consolidation of its online sales space," according to the UBS.

The context is even more complex for Asos given that the site saw an erosion of its international growth in the financial year that closed at the end of August. Thus, the brand saw a drop of over 60%. The company indicated that it wanted to seek considerable investments to curb these setbacks.