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UK retailer Woolworths rejects takeover bid

UK retailer Woolworths rejects takeover bid

British retailer Woolworths Group PLC's share price shot up as much as 23 percent on Monday, after it rejected an offer from Iceland Foods Ltd for its retail division. By noon Monday (1100 GMT) Woolworths shares were up 11 percent to 7.41 pence (US$0.14) in London.
The chain of stores _ which sell goods including electrical appliances, homewares and computer games _ said it rejected Iceland's bid because it undervalued the company's assets, involved unpractical restructuring and would have saddled the company with pension liabilities.
The boost to shares is a welcome bit of good news for Woolworths, which has suffered from reduced customer spending amid the credit crunch. Its full year profit almost halved in 2007, compared to the previous year.
Monday's performance on the London Stock Exchange trimmed Woolworths' 2008 share drop to 43 percent, giving the company a value of around 109 million pounds (US$203 million) by market capitalization.
A takeover would add 815 stores to Iceland, a supermarket chain that specializes in frozen produce and is owned by Reykjavik-based Baugur Group Hf.
Britain's Woolworths was founded in 1909 as part of the U.S. chain, but the two no longer have any link. The company is also not related to Sydney-based Woolworths Ltd. or South Africa's Woolworths Holdings Ltd.


Updated : 2021-10-20 16:22 GMT+08:00