Hornby takeover bid

AN investment fund that is trying to buy Hornby increased its stake in the Kent-based toymaker.

Phoenix Asset Management, which made an offer last month, has built up a 71.5pc stake in the firm.

Phoenix previously held 55pc of Hornby but made a £27.4m offer in June for the rest of the company, which makes Airfix and Scalextric. Hornby said the bid ‘significantly undervalued’ its business and advised shareholders to take ‘no action for the time being’.

Hornby has a turnaround programme in place to revive its fortunes after a string of profit warnings last year. The firm blamed difficulties at its Chinese suppliers, which badly disrupted its ability to deliver to customers.