Aryzta bidder Elliott unlikely to face rivals despite shareholder concerns about offer price02 DEC 2020Even as Aryzta [SWX:ARYN] investors gripe about its offer price, Elliott Management is unlikely to face a credible rival bidder in its attempt to take the Swiss-Irish baked goods company private, two sources familiar with the situation told this news service.Elliott confirmed its CHF 0.8/share indicative offer for the Swiss bakery last month (23 November). This price was in turn rejected as too low by shareholders Cobas Asset Management, Valorvento and Lodbrok Capital, as reported. Cobas further called on the board to not help Elliott with funding arrangements and urged impartiality from board members on the offer, as reported.Despite these protests, another bidder is unlikely to best Elliott, one of the sources said. He pitched to private equity funds far and wide, he said, but found none wanting to exceed Elliott’s bid. Aryzta’s indebtedness – in October it reported EUR 1.05bn (CHF 1.14bn) in net debt, dwarfing its CHF 641m market cap – is another deterrent, he said. Elliott’s bid puts Aryzta’s equity value at CHF 735m.Talks with Elliott are “far advanced” and the “main show”, the other source said.Meanwhile, Aryzta is pressing on with a hoped-for EUR 600m-800m in piecemeal disposals, for which it has mandated Houlihan Lokey and Alantra, as reported. This is the route preferred by Cobas and fellow activist Veraison Capital; last summer, both pushed for the firm to avoid a full takeover and instead realise value by disposing of individual assets.Rothschild, which last summer advised Aryzta as it entertained a takeover and dealt with Cobas’s and Veraison’s ultimately successful campaign to install new board members, is still working for the board on Elliott’s whole-of-company proposal, both sources said.Lodbrok wants to further shake up the company’s board by having shareholders vote on approval of each board member separately, rather than as a whole board, at the 15 December AGM, as reported. Aryzta is paying scant attention to this demand, one of the sources said.Elliott and Aryzta declined to comment.by Deane McRobie in London
