A potential bidding war for Currys sent the retailer’s share price soaring on Monday.
Currys’ share price rocketed 36.4% to 64¼p after Chinese online shopping giant JD.com emerged as another potential suitor for the electricals chain.
The emergence of its interest followed the tech retailer’s rejection of a £700m takeover bid by Waterstones owner Elliott on Friday.
JD.com said on Monday it was in the “very early preliminary stages” of evaluating a possible deal that may include a cash offer for the entire issued share capital of Currys.
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Elliott said it was considering a new cash bid for the retailer after its initial offer of 62p-a-share, which represented a 32% premium on Currys’ share price as of Friday, was rebuffed.
The electricals retailer said after considering the “unsolicited, preliminary and conditional proposal”, its board rejected the proposal as it believed it “significantly undervalued the company and its future prospects”.
One shareholder told Sky News the board should hold out for at least 75p-a-share “at a minimum”, which would give Currys a valuation of £800m.
Under takeover rules, Elliott and JD.com have to announce a firm intention for the electricals chain by March 16 and 18, respectively.
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