Hmv Group Regulatory News (HMV)

2 May 2006 09:51

Tim Waterstone02 May 2006 2nd May 2006 Statement by Tim Waterstone and Anthony Forbes Watson The conditions put forward on behalf of the board of HMV Group plc for TimWaterstone, Anthony Forbes Watson and Lazard European Private Equity Partners(the "acquisition consortium") to pursue their interest in acquiring the booksdivision of HMV Group ("Waterstone's") included the requirements that • due diligence be completed in fourteen working days • there be no exclusivity or cost indemnity, but • HMV Group be free to terminate the process at any time and in that event for • the consortium to be debarred for a period of one year. These conditions were not acceptable to any of the members of the acquisitionconsortium. Tim Waterstone commented: "No potential acquiror could reasonably have accepted these conditions.However, we believe the financial logic for the Group to sell the book businessis demonstrably clear, and if these assets should be put on the market withoutpenal preconditions to due diligence, then we would remain highly interested." -Ends - Enquiries: Andrew Dowler, Financial Dynamics 020 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange