Currys PLC (LON: LON:CURY) is in the red today after JD.com said it does not plan on making an offer to acquire the electrical retailer.
Currys rejected Elliott proposals
Speculation that the British company will attract bids first started earlier this week when Elliott Investment Management rolled back on plans of buying Currys.
The largest activist fund in the world made two offers to takeover the London-listed firm for as much as £760 million ($968 million). Currys, however, rejected its proposals citing “undervaluation”.
That made Elliott withdraw from the planned acquisition saying it did not have the required information to send in a third bid.
Currys stock is now down close to 20% versus its year-to-date high.
Currys’ guidance for full-year profit
Note that neither JD.com nor Elliott Investment can now make an offer to buy Currys for six months at least – unless a competing offer materialises or they secure approval from the board of $CURY.
Currys spokesperson is yet to comment on the news on Friday.
In January, Currys PLC guided for up to £115 million in pre-tax profit on an adjusted basis for the current year – ahead of consensus estimates.
Wall Street currently has a consensus “hold” rating on Currys stock that does not pay a dividend yield at writing.