Bakkavor Rejects Greencore's £1.14bn Takeover Bid

Irish food group Greencore is pursuing a transformative €1.5 billion takeover of the UK’s Bakkavor, aiming to create a combined entity with a turnover of £4 billion (€4.75 billion). Despite two offers from Greencore, Bakkavor's board has rejected the bids, citing undervaluation, with the latest proposal valuing Bakkavor at £1.14 billion. The offer included 85 pence in cash and 0.523 Greencore shares per Bakkavor share, along with a dividend right. Greencore is motivated by potential scale and improved cash flows but faces resistance from Bakkavor, whose stock rose significantly following news of the bids. Greencore has until April 11 to decide whether to proceed with a firm offer or withdraw. This acquisition would be the largest in Greencore's history, significantly impacting the convenience food sector in the UK.