Premier Foods turns down US suitor McCormick

The Pak Banker - - COMPANIES/BOSS -

LON­DON: UK food man­u­fac­turer Premier Foods says it has re­jected a bid ap­proach from US spices and herbs maker McCormick. Premier said it had turned down the un­so­licited 52p-a-share of­fer on the grounds that it "sub­stan­tially un­der­val­ued the com­pany and its prospects".Premier owns many UK house­hold brands in­clud­ing Mr Kipling, Homepride, Oxo and Bisto.McCormick de­scribes its prod­ucts as "sav­ing your world from bor­ing food".

Premier's chair­man, David Beever, said: "McCormick's pro­posal rep­re­sents an at­tempt to cap­ture the up­side value em­bed­ded in Premier's busi­ness that right­fully be­longs to Premier's share­hold­ers.

"The pro­posal fails to recog­nise the value of Premier's per­for­mance to date and prospects for the fu­ture, in­clud­ing the strate­gic plans we have to ac­cel­er­ate growth."At the same time, Premier an­nounced that it was en­ter­ing into a co-op­er­a­tion agree­ment with Ja­panese in­stant noo­dle firm Nissin.Un­der the deal, Premier will be able to dis­trib­ute Nissin's prod­ucts in the UK, while mak­ing its own prod­ucts more widely avail­able in key over­seas mar­kets. UK food man­u­fac­turer Premier Foods says it has re­jected a bid ap­proach from US spices and herbs maker McCormick.

Premier said it had turned down the un­so­licited 52p-ashare of­fer on the grounds that it "sub­stan­tially un­der­val­ued the com­pany and its prospects". Premier owns many UK house­hold brands in­clud­ing Mr Kipling, Homepride, Oxo and Bisto. McCormick de­scribes its prod­ucts as "sav­ing your world from bor­ing food". Premier's chair­man, David Beever, said: "McCormick's pro­posal rep­re­sents an at­tempt to cap­ture the up­side value em­bed­ded in Premier's busi­ness that right­fully be­longs to Premier's share­hold­ers.

"The pro­posal fails to recog­nise the value of Premier's per­for­mance to date and prospects for the fu­ture, in­clud­ing the strate­gic plans we have to ac­cel­er­ate growth." At the same time, Premier an­nounced that it was en­ter­ing into a co-op­er­a­tion agree­ment with Ja­panese in­stant noo­dle firm Nissin.

Un­der the deal, Premier will be able to dis­trib­ute Nissin's prod­ucts in the UK, while mak­ing its own prod­ucts more widely avail­able in key over­seas mar­kets.

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