German drug and chemicals giant Bayer has raised its offer for Monsanto in a move likely complete weeks of talks between the two. The Times says the $65bn proposed deal marks the latest step in a complex game of musical chairs between the Big Seven chemicals and seeds producers, which are seeking to consolidate in the face of falling prices and technological upheavals in the sector. The $125-per-share offer is $3 higher than its previous bid in May, which Monsanto dismissed as “incomplete and financially inadequate”, and represents a premium of 40 per cent over Monsanto’s closing share price on May 9 before takeover rumours began to circulate.
The Financial Times carries an analysis piece looking at the current state of play in the Hershey Mondelez potential takeover. The paper writes that the company’s fate rests in the hands of the Hershey Trust Company. “But the trust is being investigated for the second time in six years by the state attorney-general, and analysts believe the turmoil may give Mondelez leverage to return with a higher offer — if Irene Rosenfeld, its chairman, can navigate local political obstacles.”
The FT also features a story about complications in the Steinhoff takeover of Poundland. It reports that Elliott Advisors, the activist hedge fund manager, has seized a 13.2% stake in Poundland, setting up a potential battle to squeeze a higher takeover price for the struggling UK discount chain. The paper says the US-based investor has a history of intervening in agreed bids to try to force a higher price. The Guardian says Steinhoff may need to increase offer for Poundland. It notes a stock exchange announcement on Thursday revealed that Elliott Capital Advisors now spoke for a 13.2% stake controlled via contracts for difference (CFD). “A CFD is an agreement between two parties – the investor and the CFD provider – to pay each other the change in the price of an underlying asset, in this case Poundland shares,” the Guardian writes.
The Telegraph notes that the pound on track for its best week since 2009 after Bank of England leaves interest rates unchanged. But The Times carries a warning from ratings agency Moody’s that a falling pound would hit UK retailers.
Alex Brummer in The Mail writes an article praising the steely reserve of Theresa May. He says “Finally we have a Prime Minister who will stop City icons falling to foreign vultures.”
B&M’s store expansion campaign has lifted first quarter sales 21% to £554.8m but The Telegraph notes that growth was almost non-existent at established stores during a weather-beaten quarter on the high street.
John Lewis is to take its first steps Down Under by opening six concessions in Australian department store Myer (The Telegraph).
The Guardian takes a look at smart fridges, food-sharing apps, intelligent labelling and new products in a feature about tech innovations that could reduce food waste.
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