Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Currys shares surge as Elliott, JD.com circle UK retailer

(Sharecast News) - Shares in Currys surged more than 35% on Monday after US private equity firm Elliott Advisors and China ecommerce giant JD.com on Monday confirmed they were considering separate bids for struggling British electrical retailer.

Elliott, which bought the UK bookstore chain Waterstones in 2018, said in a statement there was "no certainty that an offer will be made for Currys" or the terms on which any bid might be made.

Currys on Sunday rejected Elliott's 62p-a-share approach, saying its £700m proposal "significantly undervalued" the chain and its future prospects.

Elliott has until March 16 to make a firm bid. Meanwhile, Beijing-based JD.com also confirmed it was in the "very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys" and will need to show its hand by March 18.

Last month Currys lifted full-year profit forecasts despite reporting a drop in sales as consumers cut back on discretionary spending amid high inflation and stagnant wage growth.

In an update for the 10 weeks to 6 January, the retailer said group sales declined by 4%, with those in the UK and Ireland down 3%, while the international segment saw a 6% fall. The Nordics and Greece fell 6% and 4%, respectively.

It has more than 800 stores around the world and employs 28,000 people. In the UK, it operates about 300 stores with 15,000 staff.

The company now expects adjusted pre-tax profit for the year of between £105m - £115m, above consensus expectations of £104m.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

Easyjet suspends flights to Israel until October
(Sharecast News) - Budget carrier easyJet on Tuesday said it had suspended flights to Tel Aviv until October 27 after Iran's missile and drone attack against Israel on Saturday night.
Berenberg stays at 'buy' on Yellow Cake on tight supplies and supply risk
(Sharecast News) - Analysts at Berenberg stood by their 'buy' recommendation for shares of Yellow Cake, the uranium oxide concentrate holding company, following a fireside chat with its boss, Andre Liebenberg.
Bank of America upbeat despite profits slide
(Sharecast News) - Bank of America said it had seen a "strong" first quarter on Tuesday, despite posting a sharp fall in profits.
Berenberg lowers target price on Kainos
(Sharecast News) - Analysts at Berenberg lowered their target price on software company Kainos from 1,315.0p to 1,260.0p on Tuesday following the group's full-year trading update on 15 April.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.