Elis shares tumble after reported bid for US uniform supplier Vestis (updated)

Elis SA

06/09/2024 09:38

(Adds share move, company reaction, analyst comments; updates
media identifier, previous ELIS-STOCKS/)
       Sept 6 (Reuters) - Shares in Elis  ELIS.PA  tumbled 16%
on Friday after Reuters reported, citing sources, that the
French workplace supplies provider had approached Vestis
 VSTS.N , the former uniform rentals business of Aramark
 ARMK.N , with an acquisition offer.
    The stock is the biggest faller on the pan-European STOXX
600  .STOXX  index, and is on track for its steepest one-day
decline in four and a half years.
    Elis declined to comment on the report.
    Vestis, valued at $3.3 billion on the stock market, has
become an acquisition target after recent underperformance due
to the loss of key customers.
    Midcap Partners analysts said the reported approach echoed
Elis's 2017 Berendsen takeover in which it repeatedly raised its
bid and was seen as overpaying, and could pressure the share
price in the short term despite the attractiveness of the U.S.
market.

 (Reporting by Dagmarah Mackos in Gdansk; Editing by Milla Nissi
and Jan Harvey)
 ((dagmarah.mackos@tr.com))