Aryzta AG, which supplies buns to McDonald’s, has declined a takeover offer from Elliott Management Corporation, valuing it at 794 million Swiss francs ($872 million), according to the company’s release. Elliot made 0.80 francs per share offer bid on November 18, representing a 27% premium to Aryzta’s closing price that day.

  • Aryzta’s board has been split on the path to pursue, and its recently installed chairman Urs Jordi, who is also the interim CEO, has said he doesn’t want to sell and targets refocusing the firm in core markets.
  • Aryzta has said it ended negotiations with Elliott in October but is working with advisers to explore asset disposals and the most sustainable options.
  • Elliot has said funding for the offer is available, and refinancing arrangements for Aryzta’s existing debt “are at a very advanced stage.” 
  • Elliott hopes for a friendly deal and says it needs Aryzta directors to recommend its potential offer before finalizing the financing.
  • Elliot’s bid follows several months of work conducted with the support of Aryzta and its board, before and after September’s shareholders’ meeting.
  • Aryzta’s shareholders, who own a combined 26%, have been pushing for a turnaround for years on a company that has lost more than 90% of value since 2014.
  • Aryzta’s CEO Kelvin Toland stepped down last week, complicating the takeover by Elliot.

Aryzta AG’s stock is currently gaining. ARYN is up 3.39%