Is Airport Book Retailer Up for Sale?

W. H. Smith PLC (London), the international bookseller, has said it is having talks with a private equity company, Permira Advisers (New York), that may lead to a takeover offer worth 940 million pounds ($1.7 billion).

Shares of W. H. Smith, still the U.K.’s largest magazine and book retailer, have declined 29 percent in the last six months amid concerns about competition from supermarkets like Tesco and Wal-Mart Stores’ Asda, which also sell books, DVDs and music discs. In January, W. H. Smith said that sales during the holiday period were worse than expected and that fiscal 2004 earnings would be below analysts’ forecasts.

Last year, the company sold its U.S. airport business to Hudson News Co. (North Bergen, N.J.). More recently, it was rumored to be looking for a buyer for its business in Australia and New Zealand.