‘85 Harrods Takeover Still Generating Controversy

The government said Friday that it would not call in its monopolies panel to examine a controversial 1985 takeover of the firm that owns London’s famous Harrods department store by three Egyptian-born brothers.

But it added that a long-awaited report by government inspectors on the takeover of House of Fraser PLC would not be published until the police’s Serious Fraud Office had completed its own investigations into the case.

The Department of Trade, a government ministry, said the government report contained previously undisclosed facts about the takeover and that there might be further action.

It said Trade and Industry Secretary Lord Young “has concluded that a reference to the Monopolies and Mergers Commission would not be appropriate.”

“However, it may be appropriate, in due course, for other steps to be taken in the light of the inspectors’ report.”

A spokesman for the Serious Fraud Office said the department was “investigating various allegations.”

The takeover of House of Fraser by the Al-Fayed brothers has been fiercely opposed by British tycoon Roland Rowland’s Lonrho conglomerate, which had stalked the store group and its flagship Harrods. Lonrho pushed for an investigation.

Lonrho originally bid for House of Fraser and built up a 29.9% stake. But this was blocked by the Monopolies Commission, and the company sold off its stake to the Al-Fayeds, who, in March, 1985, made a bid and won control.