Poundland rejects Steinhoff offer
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.” -