Tate & Lyle shares rise on analyst speculation of GBP 4.4bn bid from Bunge
Shares in Tate & Lyle were boosted yesterday, 16 February, amid speculation of a GBP 4.4bn (USD 6.8bn) takeover offer from the USA, The Guardian’s Market Forces blog reported. Canaccord Genuity analysts suggested that the White Plains, New York-based food and agribusiness Bunge might pay as much as 781p per share for the UK-listed food-processing group. This would give the British company a GBP 4.4bn valuation, including its pension deficit and debt burden, the report said.
Canaccord described the probability of a Bunge offer as “substantially greater” given current factors including low rates of interest, the strong US dollar, the target company’s depressed valuation and investor dissatisfaction.
Tate & Lyle has during the past year issued three profit warnings, the report noted, adding that analysts believe the company may now have passed the worst and is unlikely to issue another warning in the near future.
Canaccord Genuity’s target price for Tate & Lyle is now 650p, up from 530p, the report said. It noted that the company’s shares are currently priced at 579p, up 12p.
The FT reported in April 2014 on market gossip linking Bunge and Tate & Lyle.
The Guardian