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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Currys brushes off second offer from US activist Elliott

Currys PLC (LSE:CURY) said it has rejected a second conditional offer from US activist investor Elliott Advisors.

This second offer was worth 67p a share, against 62p in its original approach.

In a statement, the electrical retailer said it has considered the second Elliott Proposal and, as with the first, concluded it significantly undervalued the business.

Elliott’s offer values Currys at just over £750 million, though reports today suggested any offer below 80p per share is unlikely to be considered by the retailer’s board.

Since Elliot made its original offer, Chinese firm JD.com has also expressed interest in making an offer.

Currys has been under the cosh due to weak consumer spending and ongoing problems with its Nordics business but some analysts believe a trough might have been reached.

Peel Hunt analysts said recently that Currys was one of a number of retailers that were looking cheap as the sector might be turning after some tough years.

“It feels like we’re just starting to come out the other side of that, and that’s not being reflected in valuations.”

Frasers is a company likely to have a say in any final bid outcome as it holds a stake believed to be around 11% currently.

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