Currys Stock Dives as Elliott Investment Management Backs Away from Takeover

A significant drop in the share price of British electrical retailer Currys has occurred, with a 10% fall in value after a major U.S. investor, Elliott Investment Management, decided to withdraw its interest in acquiring the company. On Monday, February 19, 2024, this move resulted in a notable decline in Currys' market valuation.

Withdrawal After Rejection

Elliott Investment Management, operating through its affiliate Elliott Advisors, has officially announced that it will not pursue a new takeover bid for Currys. This decision comes after the firm's attempts to engage with Currys' Board were consistently turned down. Elliott emphasized that without sufficient information, it could not proceed with an informed bid, leading to their withdrawal from the potential acquisition.

Impact on Share Prices

The market reacted swiftly to the news of Elliott's retreat from the takeover talks. Currys' shares, which had closed at 64.5 pence on the previous Friday, plunged to about 57 pence on Monday morning. This sudden drop reflects investor concerns over the future prospects of the retailer without the anticipated bid.

Takeover Attempts and Speculations

Elliott's previous attempts to buy Currys included a £757 million offer, equating to roughly $973 million, with a share price proposal of 67 British pence. However, with these offers rejected and Elliott stepping back, other interested parties, such as Chinese online retailer JD.com, may now have a clearer path to engage in the takeover race for Currys.

A Currys spokesperson was not available to provide comments regarding the current situation when approached for a statement.

Shares, Retailer, Takeover