Deals

Metro Says Kretinsky's $6.6 Billion Bid Undervalues Retailer

Board says outlook for further value creation not reflected
Detailed comment to follow once offer document is published

A customer pushes a shopping cart in this arranged photograph inside a Metro AG Cash & Carry wholesale store in Duesseldorf, Germany, on , April 5, 2016.
Photographer: Krisztian Bocsi

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By Alexander Kell and Matthew Boyle

June 23, 2019 at 9:11 AM UTC

Updated on

June 23, 2019 at 12:26 PM UTC

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The 5.8 billion-euro ($6.6 billion) offer of Czech billionaire Daniel Kretinsky and his Slovak investment partner Patrik Tkac for Metro AG “substantially undervalues” the German food distributor, the management board said on Sunday.

The unsolicited bid of 16 euros for each ordinary share and 13.80 euros per preference share also doesn’t reflect its value creation plan, the Dusseldorf-based company said in a statement. Metro’s ordinary shares closed at 15.55 euros on Xetra on Friday, before the offer was disclosed, and are up about 16 percent this year. The preference shares closed at 13 euros.