Icelandic group Baugur has made a bid of £351 million for House of Fraser. The bid values to the British 61-store chain at £1.48. House of Fraser has agreed to be taken over by the consortium led by Baugur, which includes HBOS, entrepreneur Sir Tom Hunter, Karen Millen founder Kevin Stanford and Icelandic investor FL Group. The transaction signifies the end of a three years battle by Baugur to acquire the chain. Pending shareholder approval the deal will come into effect on 8 November. "We believe the proposed price represents good value for House of Fraser shareholders, particularly in the context of a challenging trading environment," said Jon Asgeir Johannesson, president and chief executive of Baugur Group, in a statement. The FT quotes analyst Richard Ratner of Seymour Pierce as saying that the offer is "not over-generous by should be accepted". "For those that are hesitant, they should reflect upon the fact that, every year, the market has started with a forecast for House of Fraser which - and this is no adverse comment on the management - has invariably come back during the course of the year." House of Fraser said Baugur would review the chain's product mix and space allocation and would concentrate on opening new stores and refurbishing existing stores.