Sainsbury Bid for Home Retail Group Rejected -- Update
05 Januar 2016 - 2:38PM
Dow Jones News
By John J. Edwards III
LONDON--U.K. retailer J Sainsbury PLC said Tuesday it made a
cash-and-stock offer in November for rival Home Retail Group PLC,
parent of Argos and former Sainsbury unit Homebase, whose market
capitalization was GBP802.9 million ($1.18 billion) as of Monday's
close.
Sainsbury, the No. 3 U.K. supermarket chain by market share
after Tesco PLC and Wal-Mart Stores Inc.'s Asda, said Home Retail
rejected the approach and no further approach or formal offer is
certain. Sainsbury didn't disclose the value of its November
offer.
Home Retail shares, which were already moving up Tuesday
morning, soared after Sainsbury's midday announcement. They were
lately up more than 31% at 130 pence in London trading. Home Retail
had traded above 200 pence less than a year ago but has declined
sharply as the company's stores have struggled in the tough U.K.
retail environment.
Sainsbury shares were down 4.3% to 244 pence Tuesday
afternoon.
Sainsbury and a Belgian retailer co-founded what was then known
as Sainsbury's Homebase in 1979. Sainsbury sold the Homebase chain
in 2000.
Under U.K. takeover rules, Sainsbury has until Feb. 2 to make a
firm offer for Home Retail or walk away.
Ian Walker contributed to this article.
Write to John J. Edwards III at john.edwards@wsj.com
(END) Dow Jones Newswires
January 05, 2016 08:23 ET (13:23 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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