Elliott Advisors will not make another offer to buy Currys after the electronics retailer rejected two previous proposals.
The US private equity giant, owner of bookshop chain Waterstones, said it would not put forward a higher bid following ‘multiple attempts’ to engage with Currys’ board.
Last month, the group had takeover offers worth about £682million and £750million turned down by Currys, which said the bids ‘significantly undervalued the company and its future prospects.’
Turned down: Elliott Advisors will not make another offer to buy Currys after the electronics retailer rejected its two previous proposals
Analysts at Peel Hunt estimated bosses at the London-listed firm would be unlikely to engage with any bid of less than £900million.
One prominent Currys investor, JO Hambro Capital Management UK Equity Income fund, has suggested the business hold out for at least £1billion.
Under the City Code on Takeovers and Mergers, Elliott had until 5pm on 16 March to declare its intention to put forward another proposal or walk away.
On Monday, Elliott said it was ‘not in an informed position to make an improved offer for Currys on the basis of the public information available to it’.
Currys shares slumped by 8.45 per cent to 59.05p following this announcement and have declined by approximately 60 per cent over the past five years.
Elliott’s withdrawal leaves Chinese online retail behemoth JD.com as a possible suitor for Currys, which operates more than 800 stores across eight countries.
In February, JD.com revealed it was in ‘the very preliminary stages‘ of examining a takeover deal, heightening speculation of a bidding war for Currys, although it has yet to table a bid.
The Beijing-based firm, which earned nearly $150billion in turnover last year, is one of two major Chinese e-commerce retailers alongside Alibaba-owned TMall.
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.’
JD’s interest in Currys comes as the latter struggles with slowing demand for goods like televisions and computers amid widespread cost-of-living pressures and the end of Covid-related restrictions.
It is also happening amidst a frenzy of foreign companies taking advantage of cheap valuations and a weaker pound to snap up London-listed businesses.
Earlier this month, logistics group Wincanton accepted a £762million approach from Connecticut-based GXO Logistics, while US technology firm Viavi Solutions agreed a 175p-per-share offer for telecoms testing equipment provider Spirent.
Major takeover deals finalised in the past year include Hotel Chocolat’s acquisition by confectionery giant Mars for £534million and Apollo Global Management’s takeover of Wagamama owner The Restaurant Group.
