Danone: raises bid price for Lifeway to $27
(CercleFinance.com) - Danone announced on Friday that it had raised the price of its takeover bid for US-based Lifeway Foods by 8%, despite the latter's refusal to accept the offer last week.
Expressing its "disappointment" at the rejection of its proposal, the French group said it had sent a second letter to Lifeway's board of directors, informing them of its intention to raise the price of its offer from $25 to $27 per share.
Based on the previous closing share price, its proposal values Lifeway Foods, a manufacturer of natural yogurts based on milk and kefir, at some $400m, compared with $370m to date.
Last September, Danone announced an offer of $25 per share to acquire the entire capital of the company, in which it already holds a 23.3% stake.
In a press release issued last week, Lifeway Foods not only announced that it was rejecting its offer as "unsolicited", "opportunistic" and "undervalued", but also its decision to adopt an anti-takeover defense mechanism.
This so-called "rights plan" enables the issue to shareholders of warrants entitling them to subscribe, on preferential terms, for shares in the company, thus making the takeover more costly.
Following these announcements, Lifeway Foods shares closed up over 5% on Friday on the New York Stock Exchange, bringing their gains this year to over 85%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
Expressing its "disappointment" at the rejection of its proposal, the French group said it had sent a second letter to Lifeway's board of directors, informing them of its intention to raise the price of its offer from $25 to $27 per share.
Based on the previous closing share price, its proposal values Lifeway Foods, a manufacturer of natural yogurts based on milk and kefir, at some $400m, compared with $370m to date.
Last September, Danone announced an offer of $25 per share to acquire the entire capital of the company, in which it already holds a 23.3% stake.
In a press release issued last week, Lifeway Foods not only announced that it was rejecting its offer as "unsolicited", "opportunistic" and "undervalued", but also its decision to adopt an anti-takeover defense mechanism.
This so-called "rights plan" enables the issue to shareholders of warrants entitling them to subscribe, on preferential terms, for shares in the company, thus making the takeover more costly.
Following these announcements, Lifeway Foods shares closed up over 5% on Friday on the New York Stock Exchange, bringing their gains this year to over 85%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.