Northern shares rocket after Boparan bid
Shares in Northern Foods rose to 74p at the close yesterday after its management team backed Birmingham entrepreneur Ranjit Boparan's £342m takeover bid. The move was made at the expense of Northern’s previously agreed merger with Greencore.
Boparan made his move for the Leeds-based food manufacturer at the eleventh hour on Friday after an extension was obtained to the deadline imposed by the Takeover Panel.
Northern Foods chairman Anthony Dobson said that the Boparan offer was a "compelling opportunity" for shareholders to "realise a cash exit".
At the close, the company's share price had risen to 74p, reflecting Boparan's offer of 73p per share.
While reiterating its belief the proposed merger to create Essenta Foods remained the best option for Northern, Greencore said it would now review its options. However, the Irish-based food manufacturer said it recognised the attractiveness of Boparan's cash offer to Northern's shareholders.
