UK’s Currys rejects higher bid from U.S. suitor, source says By Reuters

LONDON (Reuters) -Britain’s Currys has rejected an improved 750 million pound ($951 million) bid from U.S. suitor activist investor Elliot Advisors, according to a person with knowledge of the situation, fuelling hopes of a takeover battle for the electricals group.

Elliot’s tabling of a higher offer for Currys was first reported by Sky News. Shares in Currys climbed 3% to 69 pence in early afternoon trading – around the 65 pence to 70 pence per share level of Elliot’s approach, according to Sky News.

Currys has been in play since Feb. 17, when news of the Elliot approach at 62 pence per share first broke. Two days later, Chinese online giant JD (NASDAQ:).com said it was also considering a possible takeover of the UK retailer.

Both Elliot Advisors and Currys on Tuesday declined to comment on the potential higher bid.

Analysts have said the low valuation of Currys triggered interest in the company.

JD.com is keen on the store and warehouse network of Currys, as it looks to expand rapidly in the UK and Europe to counter weak demand in its domestic market.

Currys sells fridges, washing machines, computers and other electricals in Britain, Ireland, Sweden, Norway, Denmark and Finland, but has struggled to grow over the last two years as high inflation squeezed consumer incomes.

But in January, it guided to annual profit ahead of market expectations as it benefits from improving consumer confidence and a turnaround in its Nordics business. It is in the process of selling a Greek unit.

Britain’s takeover regulator has given the bidders until mid-March for them to make firm offers for Currys or walk away.

($1 = 0.7883 pounds)