By John Meyer, consultant in financial affairs – Eurasia Business News, November 16, 2024. Article No 1308.
French group Danone has increased its acquisition offer for Lifeway Foods from $25 to $27 per share, reflecting an 8% increase after Lifeway rejected the initial proposal. The new offer values Lifeway at approximately $400 million, compared to the previous valuation of $370 million based on the earlier bid.
Lifeway Foods, which specializes in natural yogurts and kefir, previously described Danone’s initial offer as “opportunistic” and “undervalued,” prompting the company to adopt a shareholder rights plan. This plan is designed to make it more difficult for Danone to acquire control of Lifeway without paying a premium to all shareholders.
The rights plan will activate if any entity acquires 20% or more of Lifeway’s shares, allowing existing shareholders to purchase preferred shares at a set price, thereby diluting the potential acquirer’s stake.
Despite the rejection of Danone’s initial bid, Lifeway’s stock has performed well, gaining over 85% this year, partly due to strong financial results and market interest in its products. The ongoing negotiations highlight the complexities of corporate acquisitions, especially in light of internal disputes within Lifeway’s leadership regarding its strategic direction and governance.
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© Copyright 2024 – Eurasia Business News. Article no. 1308.
Eurasia Business News 