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CONSUMER STAPLES: Danone; Lifeway foods (bolt-on) rejects revised takeover price

CONSUMER STAPLES

(BNFP; Baa1/BBB+)

Danone bumped the offer price from $25 to $27 a fortnight ago but lifeway has again rejected it this morningadding "substantially undervalues the company" but "is not opposed to the sale of the company". Danone was offering a +27% premium and has already said it will fund with cash on hand (has €2b). Even if it bids up to $35/share (~€500m) its not a credit mover for us (+0.1x on leverage).

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(BNFP; Baa1/BBB+)

Danone bumped the offer price from $25 to $27 a fortnight ago but lifeway has again rejected it this morningadding "substantially undervalues the company" but "is not opposed to the sale of the company". Danone was offering a +27% premium and has already said it will fund with cash on hand (has €2b). Even if it bids up to $35/share (~€500m) its not a credit mover for us (+0.1x on leverage).

Keep reading...Show less