Elliott Advisors pulls out of Currys takeover talks after £757m bid rejected

11 March 2024 , 08:33

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A US suitor to buy electricals retailer Currys has pulled out of the bidding (Image: PA Media)

A US suitor for electricals retailer Currys has pulled out of takeover talks after saying its proposed offers had been rejected.

Elliott Advisors said it does not intend to make an offer for Currys. The activist investor group, which owns bookseller Waterstones, said that "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" as it does not have all the information needed to make a third bid.

Currys rejected a takeover approach worth £757 million from Elliott late last month, claiming it undervalued the company. JD.com, China's biggest online retailer, said last month it was considering a possible deal to buy Currys, but stressed there is no certainty that an offer will be made.

Last week, an investor in Currys said the tech retailer should hold out for an offer of around £1 billion. JO Hambro Capital Management UK Equity Income fund, a top 10 shareholder in the company, said Currys generates about £9.5 billion in sales across its leading markets in the UK and the Nordics.

This highlights the "absurdity of UK stock-market valuations", the fund said. Elliott said it still has the right to make another offer for Currys in the next six months if it gets the agreement of the board or if another business puts a firm bid on the table.

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