Kesa Electricals has rejected a 1.7 billion pound bid approach from a private equity consortium, the retailer said on Tuesday, sending its and rivals’ shares soaring on hopes of more bid interest.
Kesa (KESA.L: Quote, Profile, Research), owner of French market leader Darty and Britain’s number two Comet, said the 325-pence-a-share proposal was in cash and undervalued its business and its prospects.
It declined to identify its suitors.
Kesa shares rallied as much as 24.5 percent to 364-3/4 pence immediately after the announcement, signalling investors are hopeful of a higher offer.
At 9:20 a.m., the stock was up 18.3 percent at 345 pence, while rival DSG International (DSGI.L: Quote, Profile, Research) was up more than 3 percent and home improvements group Kingfisher (KGF.L: Quote, Profile, Research) was up over 5 percent.
“The board has concluded that the proposal undervalues the company and its prospects,” Kesa said in a brief statement. “As such, the board of Kesa has unanimously rejected the proposal.”