Renewi, a waste-management firm, experienced a 27% plunge in its shares on Thursday following the decision by Macquarie Asset Management to withdraw their formal acquisition bid. Despite ongoing negotiations and an adjusted proposal, Macquarie faced consistent rejection from Renewi's board.
Macquarie's initial cash offer of £636.3 million or 775 pence per share was declined by Renewi, leading the asset management firm to contemplate launching another bid in September. However, Renewi remained resolute in its stance, maintaining that the offer significantly undervalued their company and its potential future growth.
The refusal of Macquarie's revised proposal marks the latest development in the ongoing saga between these two companies. The withdrawal of the acquisition attempt has had immediate repercussions on Renewi's market standing, as evidenced by the sharp drop in its share price.
The potential acquisition by Macquarie had been viewed as a significant move in the waste-management sector, with Renewi being a key player in the industry. This recent turn of events underscores the firm's confidence in its independent prospects and its commitment to safeguarding shareholder value.
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