Currys PLC (LSE:CURY) is still a takeover target despite Monday’s news that US suitor Elliott Advisors had stepped back as a potential bidder, analysts have said.
“The decision by Elliott Advisors to withdraw bid interest in Currys doesn’t mean the target is no longer in play,” AJ Bell’s Russ Mould commented.
“There is logic in wanting to own Currys. It is the last major UK-wide seller of electricals still with a physical store presence.”
Activist investor Elliott on Monday scrapped plans to make a full takeover offer for the electronics retailer, arguing that it had made several unsuccessful attempts to engage with Currys’ board.
Based on the public information available, Elliot said it was "not in an informed position to make an improved offer”.
Mould said such a statement inferred the original 62p per share offer was “highly opportunistic” and meant Elliott had hoped Currys “could be bought on the cheap”.
Indeed, this was followed by a second 67p per share offer which valued Currys at just over £750 million, with Mould noting shareholders in the retailer had already publicly said the first significantly undervalued it.
“It’s no wonder that Currys’ management didn’t even want to give Elliott time for a coffee, let alone open the books to let the suitor undertake due diligence,” he added.
Alongside this, other bids appear to be in the works, with China’s JD.com Inc (NASDAQ:JD) having confirmed last month that it was in the preliminary stages of evaluating an offer.
“Reports based on conversations with big shareholders and analysts suggest 75p is a more realistic takeout price,” Mould said.
“[This] effectively gives any other interested parties a starting point for negotiations if they want to throw their hat into the ring.”
Currys shares were trading 6.1% lower at 60.55p on Monday.