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Elliott Management has abandoned plans to buy Currys after claiming that “multiple” attempts to engage with the company’s board were “rejected”.
The US investment group initially offered to buy Currys for 62p per share before raising the offer to 67p last month. Currys said the proposals “significantly” undervalued the group, however.
In a statement to Retail Sector, Elliott said: “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 therefore confirms it does not intend to make an offer for Currys.”
Currys declined to comment.
Last month, Currys’ largest shareholder, Redwheel, warned that more foreign firms will begin to circle London companies after the electronics retailer rejected a takeover bid from Elliott.
Redwheel, which holds 14.6% of shares in Currys, said it was in “complete agreement” with the retailer’s board over their decision to reject Elliott’s offer, maintaining that Currys was “worth substantially more” than the US firm’s proposals.
While Currys forecasts full-year profits to rise ahead of expectations, share prices at the electronics retailer have been on a downward trend for the past three years, with its value falling by more than a third over the last 12 months.
