Lifeway Foods Rejects Danone Takeover Bid

Lifeway Foods has firmly rejected Danone North America's takeover offer, asserting that it undervalues the company, while claiming that a 1999 shareholder agreement with Danone violates Illinois law. Lifeway's CEO, Julie Smolyansky, emphasized the company's ongoing strategic execution and projected net sales for 2024, despite Danone's unsolicited bid. In response, Danone is preparing litigation against Lifeway, alleging that Smolyansky and the board breached fiduciary duties by issuing nearly 300,000 shares without Danone's consent, which they claim is against the terms of their agreement. Danone has accused Lifeway of prioritizing Smolyansky's interests over those of its shareholders, alleging that the company has wasted funds on her personal legal disputes and compensation. As tensions escalate, Lifeway plans to enforce its rights against Danone's claims while exploring ways to protect shareholder interests.