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Berendsen (UK) accepts takeover bid Elis (FR)

The British laundry giant Berendsen accepted a takeover bid of Elis after refusing two prior bids of the French rival. At first, there seemed to be no basis for further negotiations, but with the increased bid of £ 2.2 billion, an agreement has now been reached.

The new offer would value Berendsen at £ 12.50 per share, excluding an interim dividend, at a premium of £ 0.45, compared to previous proposals of £ 11.00 and £ 11.73 per share at the end of April and the end of May, respectively.

According to Elis, the deal will create a strong pan-European leader in textile, hygiene and facility services.

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Berendsen (UK) rejects second bid by Elis

Berendsen this week rejected a second take-over bid of its French rival Elis, worth €2.4bn. According to the British textile service company the offer did not reflect value being added by its expansion and modernization plans.

Berendsen is currently investing over €500mln for its expansion in Europe and replacement of plants and machinery in the UK. Given the capital expenditure plans and its ability to turn around its operations. In a statement the company communicated that “The board of Berendsen unanimously concluded that the revised proposal very significantly undervalues Berendsen and its prospects, and does not see a basis for further discussion”. Due to the investments Berendsen’s profitability for the first half of 2017 is impacted, but the company is confident to make up for this in the second half of the year.