Elliott Walks Away From Currys Offer
Shares in Currys plunge as US investment firm Elliiott Advisers walks away from making offer after being rejected by board ‘multiple times’
US investment firm Elliott Advisors has said it will not make a takeover offer for UK electronics retailer Currys after its efforts to engage in discussions were rejected by the company’s board “multiple times”.
Elliott proposed an offer at 62p a share, valuing Currys at £700 million, and again at 67p a share, for a value of £757m, at the end of last month.
The electronics firm said the offers significantly undervalued the firm, and its position was backed by its largest shareholder, UK asset manager Redwheel.
Analysts at UK investment bank Peel Hunt have suggested Currys’ board would only consider an offer of 80p a share or higher.
‘Not in an informed position’
Elliott, which owns bookstore chain Waterstones, said in a statement that the refusal of Currys to engage meant it was “not in an informed position to make an improved offer for Currys on the basis of the public information available to it”.
“Elliott therefore confirms it does not intend to make an offer for Currys,” the statement added.
Shares in Currys plunged more than 10 percent at the start of trading in London on the news, before recovering.
China’s JD.com said last month it was also considering a bid, and under UK takeover rules it has until 18 March to make a formal offer.
Electronics demand
Currys operates more than 800 stores worldwide and employs 28,000 people, with 300 of those stores and 15,000 staff in the UK.
The company, formed in 2014 by the merger of Carphone Warehouse and Dixons Retail, has struggled in recent years due to the cost of living crisis, which has affected the demand for electronics.
The firm’s shares have dropped 40 percent in the past two years, making it an attractive takeover target.
