Priyanka Golikeri

Mumbai: The market was rife with speculation on Wednesday that textile majors Welspun India Ltd and Gujarat Heavy Chemicals Ltd (GHCL) were in the race to buy US-based Linens ’n Things for $1.1 billion.

But the two companies denied any plan to acquire the New Jersey-based home textiles and houseware retailer.

Akhil Jindal, group president, Welspun India said, “We are not buying out Linens ’n Things or any other company for that matter. I will not like to comment on any future plans as of now.”

GHCL chairman Sanjay Dalmia, too, denied any such plan.

“We are looking at expanding our overseas presence, especially in the UK and eastern Europe. But we have no plans of acquiring any US company at present.”

But Dalmia admitted GHCL was open to inorganic growth in both the geographies, and would work out some deal in the next one year or so.

“It is too early to give more inputs. We are open to acquisitions, but not in the US,may be in eastern Europe or the UK,” he said.

Linens ’n Things,which operates over 570 stores in the US and in six provinces in Canada, had filed for bankruptcy late last month and was planning to close down 120 stores.

The company had posted losses of $242 million in 2007 on sales of $2.79 billion. This prompted speculation that it was up for grabs.

On the other hand, both Welspun and GHCL have a history of foreign acquisitions.

Source : DNA