(CercleFinance.com) – Danone announced on Friday that it had increased the price of its takeover bid for the American company Lifeway Foods by 8%, despite the latter's refusal to accept the project last week.
Expressing its 'disappointment' at the rejection of its project, the French group said it had sent the Lifeway board of directors a second letter informing it of its intention to increase the price of its offer from 25 to 27 dollars per share .
Based on last night's price, his proposal values Lifeway Foods, a maker of natural milk- and kefir-based yogurts, at some $400 million, up from $370 million so far.
Danone formalized last September 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 released last week, Lifeway Foods not only announced that it was rejecting its offer deemed 'unsolicited', 'opportunistic' and 'undervalued', but also its decision to adopt an anti-takeover defense mechanism. .
This system, called 'rights plan', allows the issuance of vouchers to shareholders allowing them to subscribe, under preferential conditions, to shares in the company, thus making the takeover more expensive.
Following these announcements, Lifeway Foods shares rose more than 7% on Friday morning on the New York Stock Exchange, bringing its gains this year to more than 85%.
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