Rebel shareholders in Moss Bros have rounded on the board after Baugur, the Icelandic investment group, today said that it needed yet more time to put together a £40 million takeover bid for the menswear retailer.

Baugur broke its silence after nine weeks of due diligence today, stating it was in the process of “arranging financing and preparing documentation” for a formal offer, priced at 42p per share. It is understood that Baugur may take another two weeks to table a formal approach.

However, angry investors said that the Moss Bros board must call on the Takeover Panel to intervene to prevent the continued uncertainty about a bid from Baugur affecting the business.

David Moss, a former Moss Bros director and great-great grandson of the retailer's founder, told Times Online: “This has gone on way beyond any reasonable amount of time.

“The board won’t say anything as they’re desperate for Baugur to make a bid but the uncertainty, and the low morale created by the uncertainty, is definitely damaging the business.”

He added: “I have no idea what is going on in this wonderful country of ours when a company can face this level of uncertainty without the powers that be doing anything about it.”

Shares in Moss Bros fell 1p to 46p after Baugur issued its statement.

Stock in the group has climbed in recent weeks on speculation of a counter bid, spiking to 51.25p on April 7. Laura Ashley, the home furnishings retailer, has built up a stake of nearly 7 per cent in Moss Bros, with some share purchases made above the 42p indicative bid price mooted by Baugur.

The Moss and Gee families between them control nearly 26 per cent of Moss Bros shares and have been outspoken opponents of Baugur's potential bid ever since the Icelandic group said it was considering a deal. They claim the price is too low despite the recent downturn on the high street.

Moss Bros has continually argued that it has been acting in the best interests of all shareholders. Philip Mountford, chief executive, last month insisted that the board would welcome any rival bids.

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