McCormick & Company Raises Potential Bid Offer For Premier Foods
US-based herbs and spices group McCormick & Company has revised its possible offer for Premier Foods, the UK convenience food processor, to 65 pence in cash per share, following the rejection of two earlier approaches. The improved proposal values Premier Foods’ equity at £537 million.
The board of Premier Foods believes that the revised proposal continues to undervalue Premier and its prospects, but is prepared for meetings to take place in order to discuss value drivers, a review of material pensions documentation, current trading and material contracts, and so to establish whether McCormick & Company will increase its offer price to a recommendable level. It will also be important for McCormick & Company to demonstrate to the board that any revised proposal is deliverable.
The Premier board has informed McCormick & Company that it will be expected to provide an improved proposal following these meetings. According to the Premier board, generating shareholder value remains its key focus.
