UK food manufacturer Premier Foods says it has rejected a bid approach from US spices and herbs maker McCormick.
Premier
said it had turned down the unsolicited 52p-a-share offer on the
grounds that it "substantially undervalued the company and its
prospects".
Premier owns many UK household brands including Mr Kipling, Homepride, Oxo and Bisto.
McCormick describes its products as "saving your world from boring food".
Premier's
chairman, David Beever, said: "McCormick's proposal represents an
attempt to capture the upside value embedded in Premier's business that
rightfully belongs to Premier's shareholders.
"The proposal fails
to recognise the value of Premier's performance to date and prospects
for the future, including the strategic plans we have to accelerate
growth."
At the same time, Premier announced that it was entering into a co-operation agreement with Japanese instant noodle firm Nissin.
Under
the deal, Premier will be able to distribute Nissin's products in the
UK, while making its own products more widely available in key overseas
markets.
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