Elliott tries and fails with second bid for Currys as takeover war continues

Currys has rejected a second takeover bid from activist investment firm Elliott Advisors worth around £750m.

The owner of Waterstones had lodged an offer of between 65p and 70p-a-share, up slightly from an initial 62p-a-share bid worth £700m, Sky News’ Mark Kleinman said. 

Currys rejected an offer from the firm last week on the grounds that it undervalued the company. 

But Elliot came back and said it would consider a possible cash offer for Currys, but noted there “can be no certainty that an offer will be made”. 

Currys is also said to be in talks with Chinese commerce giant JD.com about the possibility of a deal, however cautioned at the time there “can be no certainty that an offer could be made”. 

In the last year, investors have watched Currys struggle to keep its head above water, as a slowdown in spending and national cash crunch battered both its earnings and share price. 

Its most notable ploy to shore up extra funds was offloading its Greek and Cypriot arm for £175m.

In a statement issued to the London Stock Exchange, Currys said: “Further to our announcement dated 17 February 2024, the board of Currys notes the recent media speculation and confirms it has received a further preliminary and conditional proposal from Elliott Advisors (UK) Limited regarding a possible cash offer for the entire issued and to be issued share capital of the company at 67 pence per share.

“This follows the prior unsolicited proposal from Elliott at 62 pence per share which was unanimously rejected by the board of Currys on the basis that it significantly undervalued the company and its future prospects.

“The board of Currys considered the second Elliott proposal, together with its financial advisers, and concluded that it significantly undervalued the company and its future prospects.

“Accordingly, on 26 February 2024, the board of Currys unanimously rejected the second Elliott proposal.

“There can be no certainty that an offer will be made for Currys nor as to the terms on which any offer might be made.”