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.
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.
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.
German foreign minister warns Russia will face consequences for “absolutely intolerable” cyberattack on ruling party,…
Google is reportedly laying off at least 200 staff from its “Core” organisation, including key…
Investor appeasement? Apple unveils huge $110 billion share buyback program, as sales of iPhone decline…
Tesla retreats from pioneering gigacasting manufacturing process, amid cost cutting and challenges at EV giant
No skynet please. After the US, UK and France pledge human only control of nuclear…
Microsoft's AI investments continue in south east Asia, after investments in Japan, Malaysia, Indonesia, as…