13th Apr 2016 06:35
LONDON (Alliance News) - US spices and flavourings company McCormick & Co Inc on Wednesday said it has decided not to make an offer for UK food company Premier Foods PLC after deciding it would not be able to make a bid which would secure approval from the Premier Foods board.
McCormick had tabled a 65.00 pence per share offer for Premier Foods at the end of March after Premier Foods had rejected two other offers. Premier then faced pressure from shareholders to enter into talks with McCormick and relented after the higher offer had been made.
Premier said last week the talks with McCormick had been "constructive", but on Wednesday McCormick said it would not be making an offer for Premier.
"McCormick has, after careful consideration, concluded that it would not be able to propose a price that would be recommended by the board of Premier Foods, while also delivering appropriate returns for McCormick shareholders," the US company said.
Premier Foods, the owner of Bisto gravy and Mr Kipling cakes, confirmed McCormick's withdrawal and said it appreciated the "open and constructive spirit" in which the talks were conducted.
Premier said it sees a strong future for itself as an independent company and added it believes "the foundations have been laid for significant growth and shareholder value creation."
By Sam Unsted; [email protected]; @SamUAtAlliance
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