Currys has rejected a takeover approach by Waterstones owner Elliott, which it claims “significantly undervalued the company”.
It emerged on Friday that the retailer received what it termed an “unsolicited, preliminary and conditional proposal” from Elliott.
However, Currys said the offer “significantly undervalued the company and its future prospects” and its board unanimously rejected the approach.
The investment firm had offered 62p per share, while Currys stock was worth 47.08p when the markets closed last week.
Elliott, which also owns Waterstones, now has until 16 March to make an offer for the electricals retailer under the City Code on Takeover and Mergers Code.
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Currys’ share price has been on a downward trend for the past three years, with its value falling by more than a third over the last 12 months.
It counts Mike Ashley’s Frasers Group as a shareholder, with the sports tycoon snapping up more than 10% of the business last year.
Last month, Currys forecast full-year profits would rise ahead of expectations, despite UK like-for-likes falling 3% year on year, as it benefitted from stable gross margin and continued cost savings.
CEO Alex Baldock said at the time: “As consumer confidence improves, we’ll be well placed to build on these strong foundations, to benefit shareholders as well as colleagues and customers.”
Elliott is known as an activist investor and at most of its investment it has pushed for strategic or management changes.
At one of its investments, Premier Inn owner Whitbread, it called for the hospitality giant to spin off Costa Coffee, which it later sold to Coca-Cola.
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