Key Takeaways:
DCC Plc, a marketing and support-services provider, rejected a $6.7 billion takeover approach from private-equity firms KKR and Energy Capital Partners, calling the offer inadequate and stating that it undervalues the company and its future prospects.
"The Board has unanimously rejected this unsolicited, indicative and conditional proposal as it materially undervalues the company and its future prospects," DCC said in a statement.
The rejected proposal was for GBP 58.00 per share in cash. Following the announcement of the initial approach, DCC's shares surged 13% to 60.95 pence, implying a market capitalization of £5.21 billion ($7.04 billion). The stock is up 32% year-to-date.
The rejection now puts the ball back in the court of the KKR-led consortium, which has until June 10 to either present a higher offer that might be acceptable to the DCC board or walk away from the deal. The market will be closely watching for any new developments, as the current share price is trading above the offer price, suggesting that investors anticipate a higher bid.
This article is for informational purposes only and does not constitute investment advice.
