McCormick Drops Offer to Acquire Premier Foods
U.S. spice maker McCormick Foods dropped its takeover proposal of Britain's Premier Foods, after it raised its proposal to 65 pence per share, aiming to break a stalemate after Premier refused its prior offers of 52 and 60 pence.
McCormick concluded that it would not be able to propose a price that would be recommended by the Board ofPremier Foods while also delivering appropriate returns for McCormick shareholders. Accordingly, McCormick has withdrawn its proposal to acquire Premier Foods, the company said in a statement.
Premier said in a statement it "sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation."
Reuters reports after the news of McCormick's withdrawal, shares in Premier Foods, which had nearly doubled from 31 pence a share when McCormick's interest was revealed on March 23, sank down 25 percent at 42.8 pence by 1400 GMT on Wednesday. The fact that Premier's shares have not retreated all the way down to their pre-offer level suggests the market has some faith in the plans, according to Davy Research analyst Declan Morrissey. For the full article click here.
McCormick concluded that it would not be able to propose a price that would be recommended by the Board of
Premier said in a statement it "sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation."
Reuters reports after the news of McCormick's withdrawal, shares in Premier Foods, which had nearly doubled from 31 pence a share when McCormick's interest was revealed on March 23, sank down 25 percent at 42.8 pence by 1400 GMT on Wednesday. The fact that Premier's shares have not retreated all the way down to their pre-offer level suggests the market has some faith in the plans, according to Davy Research analyst Declan Morrissey. For the full article click here.