Elliott’s Swiss cookie raid merits activist slap
24/11/2020 15:47
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Karen Kwok
LONDON, Nov 24 (Reuters Breakingviews) - Paul Singer’s fund
made a 733 mln euro bid for debt-laden baker Aryzta. It comes as
the Otis Spunkmeyer maker’s soggy valuation may gain from a plan
backed by other investors to break it up. The easing pandemic
gives shareholders reason to hold out for more.
Full view will be published shortly.
On Twitter https://twitter.com/karenkkwok
CONTEXT NEWS
- Elliott Advisors on Nov. 23 said it had made a proposal to
acquire Aryzta, the Swiss-Irish maker of Otis Spunkmeyer
cookies, for 794 million Swiss francs ($872 million).
- Elliott made a bid on Nov. 18 to pay 0.80 Swiss francs for
each Aryzta share, the hedge fund said. That is equivalent to a
27% premium to the closing price of 0.629 per Aryzta share on
the same day.
- The financing for the potential offer is available and
refinancing arrangements for the company’s existing debt are at
a very advanced stage, Elliott said, adding that it would need
Aryzta’s board to recommend the offer.
- In a Nov. 23 letter sent to the Aryzta chairman and board
and seen by Breakingviews, Cobas Asset Management, which holds
close to 10% of Aryzta’s shares, said it has no intention to
tender its shares at Elliott’s offered price, as “it
significantly undervalues the company”.
- Shares of Aryzta were trading at 0.68 Swiss francs at 1302
GMT on Nov. 24.
- For previous columns by the author, Reuters customers can
click on KWOK/
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Elliott Advisors proposes to acquire Aryzta, Swiss firm looks
for other options urn:newsml:reuters.com:*:nL8N2I90HK
Aryzta statement https://ml-eu.globenewswire.com/Resource/Download/07086bcf-d988-46f3-9931-6efebdff8450
Elliott statement https://www.businesswire.com/news/home/20201122005093/en/Elliott-Statement-on-ARYZTA
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(Editing by Neil Unmack and Oliver Taslic)
((karen.kwok@thomsonreuters.com; Reuters Messaging:
karen.kwok.thomsonreuters.com@reuters.net))