US firm Elliot scraps Currys takeover bid


US investment firm Elliott Advisors has decided to withdraw its takeover bid for Currys after being rejected by the retailer’s board multiple times. The initial offer valued the electricals chain at £700m, which was later raised to £757m. However, Currys deemed these offers as significantly undervaluing the business.

Despite Elliott’s retreat, there is still a possibility of a bid from China’s, who expressed interest in making an offer for Currys. The company, which has over 800 stores globally and employs 28,000 people, operates about 300 stores in the UK with 15,000 staff.

Elliott, known for owning UK bookseller Waterstones, stated that they had attempted to engage with Currys’ board but have now chosen to step back due to lack of sufficient information to make an improved offer. As a result, they confirmed that they do not intend to make an offer for Currys.

The cost of living increase in recent years has impacted many retailers, leading to a decrease in consumer spending. Despite a 3% decline in underlying sales over the Christmas period, Currys raised its profit forecast for the year through cost cuts and higher profit margins on services.

Analysts have noted that Currys’ share price appears low compared to its market share and profitability, making it an attractive investment opportunity. Following the news of Elliott Advisors’ withdrawal, Currys’ share price dropped by 8% in early trading on Monday., which has until 18 March to make a formal offer or walk away from the deal under UK takeover rules, had confirmed its interest in Currys last month. They stated that they were in the preliminary stages of evaluating a possible bid.

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