Yesterday Penny Boys, the OFT’s executive director, said: “It is for the Competition Commission to assess further whether the merger is likely to lead to higher prices and reduced service for passengers.”Sovereign is based and operates solely in the Hertfordshire area and is currently part of the Blazefield group. Blazefield plans to concentrate on its five companies in Yorkshire and Lancashire if the sale is successful.If the deal is cleared, Arriva would hold more than 60 per cent of the commercial market in Hertfordshire. It is already the largest bus operator in London.The Competition Commission is expected to report by 17 January next year.. Moss Bros yesterday admitted it was struggling to pin down its biggest shareholder, Kevin Stanford, for a meeting, as the menswear chain confirmed it had made its first interim profit in five years.

Shares in the satellite broadcaster BSkyB slumped 7 per cent today after saying investment plans would affect operating profits. After a difficult autumn, like-for-like sales rose 2 per cent at its Cecil Gee shops, while Hugo Boss reported a 14 per cent sales surge.Mr Mountford said the strong start to the year meant he was “confident” the group would beat its 6 per cent underlying annual sales target and “hopeful” it would manage an 8 per cent rise.Seymour Pierce, the brokerage, nudged its full-year pre-tax profit forecast up to £4.3m from £4m.. In a trading update, it said its interim profits would be “not less than” £500,000 against losses of £1.8m the previous year.Like-for-like sales at the group’s three retail brands – Moss, Hugo Boss and Cecil Gee – climbed 8 per cent during the six months to 31 July, ahead of the group’s expectations of a 5 to 6 per cent rise. Its Moss-branded shops increased the amount of “quality branded suits at good prices” that they stock, Mr Mountford said, explaining the chain’s 9 per cent underlying sales rise. Gross margins rose 1.5 percentage points.The company said suit sales had surged 14 per cent during the period, reflecting a return to formal dressing in offices across the country. In June, Mr Stanford made £11m when he sold the Karen Millen group to the Icelandic group Baugur. He has declined to comment on his plans for Moss Bros.Mr Mountford’s comments came as Moss Bros said it had returned to the black at the half-year stage for the first time in five years.

There is a lot of speculation,” he added.Shares in the suits specialist yesterday climbed 2p to 90p. They have almost doubled since January, buoyed by the retailer’s turnaround and speculation that Mr Stanford is planning to bid for the group. Most of his stake is held through the contracts for difference he acquired from fellow retail entrepreneur Shami Ahmed.Mr Mountford said it would “be in everybody’s best interests” if the company could meet its biggest shareholder “I have absolutely no idea at all [what his intentions are] No one knows what he wants. The Office of Fair Trading announced yesterday that it would refer Arriva’s proposed acquisition of the Sovereign Bus and Coach Company’s Hertfordshire bus operations to the Competition Commission. It said the number of plaintiffs suing the company had risen from 8,500 to 9,500 The claims are thought to amount to nearly £1bn But BOC is vigorously defending the action. “There have been no changes in any medical evidence in the case.