Metro: EP Global's offer undervalued, group says

(CercleFinance.com) - After markets closed on Friday, EP Global Commerce - a holding company owned by Czech billionaire Daniel Kretinsky - said that it intends to make a takeover bid on German retailer Metro at 16 euros per ordinary share, in cash.


In a statement on Sunday, Metro said EP Global's unsolicited offer "substantially undervalues" the company, offering a premium of just 3% over the closing price of ordinary shares of Friday.

Also, the bid does not reflect the group's value creation plan, as the company is currently taking "decisive actions," it added.

Unsurprisingly, Metro has advised shareholders not to take action prior to a statement to be issued by its supervisory board.

According to sources, EP Global currently has a 10.9% equity stake in Metro.

Metro's ordinary shares are currently up 3.1%, trading in line with EP Global's 16-euro offer.

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