Pound­land re­jects Stein­hoff of­fer

CityPress - - Business -

Stein­hoff said it’s con­sid­er­ing its po­si­tion af­ter UK dis­count re­tailer Pound­land re­jected its takeover pro­posal, rais­ing the pos­si­bil­ity of an­other failed foray in Europe.

Stein­hoff needs to con­sider fac­tors in­clud­ing Bri­tain’s de­ci­sion to leave the EU, it said. A day af­ter the ap­proach was dis­closed on June 15, Pound­land forecast a drop in first-half same-store sales. Its shares fell 10% on Fri­day af­ter the Brexit vote.

“It’s sen­si­ble for Stein­hoff to re­con­sider their po­si­tion,” said Mark Hodg­son, an an­a­lyst at Av­ior Cap­i­tal Mar­kets.

“I wouldn’t nec­es­sar­ily read that they are walking away. If Pound­land’s share falls fur­ther, it could work to their ad­van­tage.” -

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