Serial takeover bidder Steinhoff International Holdings NV (JNB:SNH) may face a challenge in its pursuit of discounter Poundland Group PLC (LON:PLND), it has emerged.
Steinhoff, which failed in previous bids for Argos owner Home Retail Group Plc (LON:HOME) and Darty PLC (LON:DRTY), reportedly may have to lift its £600mln bid for Poundland amid pressure from a rebel shareholder.
US hedge fund Elliott has boosted its stake in Poundland to 17.5% and is now the budget retail chain's second biggest investor behind Steinhoff, the Daily Telegraph reported.
Elliott believes Steinhoff's 220p per share agreed offer for Poundland is inadequate, the newspaper cited unidentified senior City sources as saying.
Steinhoff already owns UK home furnishing chains Harveys and Bensons for Beds.
But it failed to overturn J Sainsbury plc's (LON:SBRY) bid for Home Retail and also lost out in an attempt to buy electrical chain Darty, which is being snapped up by French electrical goods retailer Fnac.
The Telegraph cited "sources close to Steinhoff" as saying the group was determined not to overpay for acquisitions.
Elliott has a reputation for intervening in takeover deals to force bidders to increase their offers.
Poundland shares fell 0.42p, or 0.19%, to 224.08p.