Elliott says it’s no longer interested in making an offer for Currys after two rejections
Elliott Advisors has said it’s no longer interested in making an offer for electrical retailer Currys after it was rebuffed twice by the company.
The activist investor said this morning that after “multiple attempts to engage with Currys’ board” it will now abandon plans to take over the business.
Last month, Currys shut down a £700m takeover from Elliott on the grounds it undervalued this business.
That was followed a few days later by a second bid from the hedge fund worth around £750m, which was also rejected.
Stakeholders in the British computer and household goods seller have since come out to say they want at least £1bn for the group.
Elliott Advisors said: “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 on the basis of the public information available to it.
“Elliott therefore confirms it does not intend to make an offer for Currys.”
Questions remain about whether Chinese online shopping giant JD.com will make a swoop for the business.
The firm previously said it held discussions about a possible takeover of Currys.
Shares in Currys are down over nine per cent in early trade.
Russ Mould, investment director at AJ Bell, said: “There is logic in wanting to own Currys. It is the last major UK-wide seller of electricals still with a physical store presence.
“There are still plenty of people who like to go into a shop to get advice or technical assistance, compare products in person, and be able to collect items without having to risk a courier losing or damaging their goods during transit.
He added: “The business has been through a significant restructuring programme and is starting to see some rays of light in terms of the recovery story.”
“Elliott says Currys’ management refused to engage which at that point would normally see a bidder go hostile in their attempt to succeed with a takeover. Instead, it has just walked away which suggests that its original approach was highly opportunistic in the hope Currys could be bought on the cheap.
“Elliott’s statement implied it wanted more information on the group before considering a higher price but it couldn’t get the necessary details.”