Premier Foods’ shares jump after takeover rejection

Shares in Premier Foods jumped to a high of 54.05p yesterday, after the company announced it had rejected a takeover bid by US spice brand McCormick.

Shares ended the day at 31.50p on 22 March, but rose sharply after the announcement on 23 March, ending the day at 53.93p. Prices have since declined slightly, with a value of 48.50p at 11:58 this morning (24 March).

Premier Foods revealed it had rejected two offers from McCormick, one on 12 February, which valued the company’s shares at 52p, and another on the 14 March, which offered 60p a share, an offer which totalled £495.45m.

Premier Foods’ statement also included the announcement of a new co-operation agreement with Japanese instant noodle brand Nissin, which will allow Premier to distribute Nissin products in the UK, while seeing its own products made more widely available in key overseas markets. Nissin has since agreed to buy a 17.27% stake in the company.

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