Hostile French bid for £2bn laundry giant

BRiTiSH linen provider Berendsen may soon fall into French hands after fending off a hostile takeover bid.

The london-based group, which provides linen and tablecloths to hotels and restaurants, has rebuffed a £2bn bid from French rival Elis, claiming it was ‘highly opportunistic’ and significantly undervalued the business.

But Elis, Europe’s largest provider of linen, has refused to take no for an answer and called for talks.

Elis first approached Berendsen in april, with a cash and shares deal worth £11 a share before returning on May 16 with a bid of £11.73 a share.

But the bid, a 36pc premium to Berendsen’s share price, was rejected. Both offers were made in private, but the French firm went public with its proposal yesterday, hoping to win shareholder support.

it claimed combining the two companies would create a strong pan-European leader in textile and facility services. Elis operates in France, Spain, italy and Portugal, as well as Germany where it overlaps with Berendsen.

as there is little overlap in the UK, it is unlikely jobs would be affected by a takeover.

Berendsen is the latest British firm to come under foreign attack, following the weak pound since the referendum which has made companies more attractive to foreign buyers. its share price has fallen since october following profit warnings and it has launched a £ 450m investment plan aimed at turning around the business. it claimed that Elis was trying to capitalise on the share price dip and the fall in the pound.

iain Ferguson, chairman, said: ‘The proposed combination would result in substantial risk. Berendsen has a strong team to deliver against our strategy, so we strongly advise shareholders take no action.’