JD.com Walks Away From Currys's Takeover Talks — Update
By Michael Susin
Beijing-based online marketplace JD.com said it won't make a takeover offer for Currys, just a few days after Elliott Advisors (UK) also walked away from a potential bid war for the U.K. electronics retailer.
The news prompted Currys's shares to initially drop more than 10% to 51.05 pence but they later recovered to 56.0 pence at 1438 GMT. The stock was trading above its closing price of 47.08 pence on Feb. 16, the last trading day before JD.com and Elliott made public their interest in a possible bid. Shares are down 22% on a 12-month basis.
JD.com said Friday that it doesn't intend to make an offer for Currys, without disclosing further details. It previously announced that it was in very preliminary stages of evaluating a potential offer.
Currys didn't reply to a request for comment.
The decision comes after Elliott Advisors said Monday that it wouldn't make any offer, adding that Currys rejected multiple attempts to negotiate. The announcement also prompted shares to drop 10%.
The investment management firm said it wasn't in an informed position to make an improved offer on the basis of the public information available.
Currys's board unanimously rejected both Elliott offers, as it considered that the proposal significantly undervalued the company and its future prospects.
On Feb. 27, Elliott proposed a cash offer of 67 pence a share, valuing Curry's total shares at around 759.4 million pounds ($968.4 million), improving an earlier Feb. 19 offer to buy the company for 62 pence a share.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
March 15, 2024 11:22 ET (15:22 GMT)
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