McCormick ups bid for Premier Foods
Published 30/03/2016 | 08:37
US spice company McCormick & Co raised its possible offer for Premier Foods Plc, calling Premier's board to engage to agree on a recommended offer.
On Wednesday, McCormick proposed an offer of 65 pence per Premier share, valuing Premier at £1.5bn including debt and pension liabilities.
The latest offer is a little over double the stock's close on March 23, when McCormick made its approach public.
Spokespeople at Premier were not immediately available to comment on the revised proposal.
Premier Foods has rebuffed two approaches from McCormick, saying its previous proposal of 60 pence per share, then worth 1.5 billion pounds including debt and pension liabilities, "significantly undervalued" it.
Rejecting the second approach from McCormick last week, Premier also signed a cooperation deal with Nissin that saw the Japanese company become Premier's largest shareholder.
Nissin bought a 17.3 percent stake from private equity firm Warburg Pincus for 63 pence per share, or 90 million pounds.
This brought premier in the crosshairs of two other top shareholders, Paulson & Co and Standard Life Investments, who criticised Premier's board.
McCormick has until April 20 to make a firm offer as per British takeover rules.