Currys has rejected a second takeover approach from US firm Elliott, saying the offer "significantly undervalued" the electronics chain. Elliott valued the retailer at around £757 million, up from its initial £700 mn valuation earlier this month.
The US company is up against Chinese rival JD.com which has also expressed an interest in buying the British firm. Currys has more than 800 stores globally, but has seen slowing sales due to the cost-of-living crisis.
It said that over the Christmas period, which is usually busy for retailers, it saw a 3% drop in sales compared with the same period a year earlier. Like many High Street businesses, Currys has been struggling with falling sales as customers cut back on spending.
Elliott, which bought UK book shop chain Waterstones in 2018, has a reputation as an activist investor, meaning it pursues companies in order to take them over and change how they are run.
The US firm's latest offer valued Currys at 67p per share, an increase on its previous offer of around 62p per share. In a statement, Currys confirmed it had received a second offer from Elliot.
"The Board of Currys considered the Second Elliott Proposal, together with its financial advisers, and concluded that it significantly undervalued the Company and its future prospects. Accordingly, on 26 February 2024, the Board of Currys unanimously rejected the Second Elliott Proposal," it said.