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H&M may be facing possible buyout from chairman
Speculation is rife that Hennes & Mauritz AB (H&M) chairman Stefan Persson is attempting to take the clothing retail giant private, as the billionaire continues to load up on the company's shares.
In May alone, Persson has spent approximately 3.5bn Kronor, roughly $401m, on H&M shares and has spent almost double that amount this year in total, bringing his family's control of the company up to 44.5%, or 49.9% when his sister Lottie Tham's family is included.
The extended family has held approximately 75% of the company's voting rights since the end of April.
Reports from Swedish media that Persson might be building up his shareholding in order to take the company private have been rejected by his son, H&M chief executive Karl-Johan Persson.
As such, some analysts believe the billionaire my simply be reinvesting the approximately 7bn Kronor of dividends he has received from the retailer this year.
The company is the fifth largest in Sweden and it would cost about 120bn kronor in funding to pay for the remaining shares that the family would require to take the company private.
However, Bloomberg has reported that an unnamed Stockholm-based H&M analyst claimed the family has the ability to gain a controlling stake in the company, and the theory is now a bigger possibility than a year ago.