Investing.com -- Shares in Asos PLC (LON:ASOS) surged by almost 10% on Monday after the fast fashion retailer reportedly received a bid from Turkish rival Trendyol late last year.
Citing unnamed sources, The Times newspaper in the U.K. reported that Alibaba-backed (HK:9988) (NYSE:BABA) Trendyol approached Asos with a £1 billion (£1 = $1.2392) offer in December. The now-scrapped acquisition would have valued Asos at between £10 to £12 a share, The Times added.
Trendyol also approached Anders Holch Povlsen, a Danish billionaire and Asos's biggest shareholder, about the deal, The Times said.
Trendyol, Asos, and Povlsen's investment vehicle all declined to comment to The Times.
The reports come after Asos was bounced from the FTSE 250 index of mid-sized firms last week following a steep drop in its performance.
The business had seen demand surge during the pandemic, when health regulations led to the closure of high street shops. But the lifting of these restrictions revitalized brick-and-mortar competition, while supply chain constraints pushed up expenses and cost-of-living pressures weighed on consumer spending.
Asos subsequently posted a loss of £87.4M in the first half.