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US investor Elliott walks away from offer for UK's Currys

Reuters
Updated ·2 min read

LONDON (Reuters) -U.S. investor Elliott Advisors does not intend to make an offer for Currys, saying the board of the British electricals retailer would not engage with it.

Shares in Currys, which last month rejected an improved 757 million pounds ($973 million) proposal from Elliott, were down 9% in early trading.

China-based online giant JD.com has also said it is considering an offer.

"Following multiple attempts to engage with Currys' board, all of which were rejected, it is not in an informed position to make an improved offer for Currys on the basis of the public information available to it," Elliott said on Monday.

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"Elliott therefore confirms it does not intend to make an offer for Currys."

Elliott's second proposal was valued at 67 pence per share. Currys shares closed Friday at 64.5 pence.

An exterior view of a Currys store in London, Britain, November 19, 2021. Picture taken November 19, 2021. REUTERS/May James/File Photo
An exterior view of a Currys store in London, Britain, November 19, 2021. Picture taken November 19, 2021. REUTERS/May James/File Photo (Reuters / Reuters)

JD.com is keen on Currys' store and warehouse network to help it expand in the UK and Europe and counter weak demand in China. It has not made any statement since Feb. 19 when it confirmed it was in the early stages of evaluating a deal.

It has until March 18 to make a firm offer or walk away under UK takeover rules.

Analysts at Peel Hunt have said they believe it would take an offer of over 80 pence per share for Currys' board to engage.

While Currys, which sells fridges, washing machines, computers and other electrical equipment in Britain, Ireland, Sweden, Norway, Denmark and Finland, has struggled to grow over the last two years due to the squeeze on consumer spending, the company argues that its prospects are bright.

In January, it forecast annual profit ahead of market expectations as it benefited from improving consumer confidence and a better performance in the Nordics.

The number of failed takeovers of UK-listed companies has more than doubled in recent years as boards have rebuffed a slew of bids they believe are taking advantage of cheapened stock prices.

($1 = 0.7783 pounds)

(Reporting by James Davey; editing by Sarah Young and Jason Neely)