Steinhoff raises offer for Poundland
'‹South African retailer Steinhoff has '‹increased'‹ its offer for discount chain Poundland after pressure from a US hedge fund to bump up the deal.
Poundland has agreed to a higher 227p-a-share bid, worth £610.4'‹m including a 2p-a-share dividend, following moves by Elliott Management to build up a 17.5'‹ per cent'‹ stake in the group.Steinhoff had originally agreed a 222p-a-share deal worth £597'‹m last month, but within days the US activist had increased its stake, reportedly with plans to bump up the deal - so-called "bumpitrage".Poundland and Steinhoff remained tight-lipped on Elliott's involvement in the higher offer.Darren Shapland, chairman of Poundland, said: "The Poundland board is pleased to recommend Steinhoff Europe's increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price."