Guard the cookie jar

24 Nov 2020 By Karen Kwok Follow @KarenKKwok

Paul Singer’s fund made a 733 mln euro bid for debt-laden baker Aryzta. It comes as the Otis Spunkmeyer maker’s soggy valuation may gain from a plan backed by other investors to break it up. The easing pandemic gives shareholders reason to hold out for more.

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Elliott Advisors on Nov. 23 said it had made a proposal to acquire Aryzta, the Swiss-Irish maker of Otis Spunkmeyer cookies, for 793 million Swiss francs (733 million euros).

Elliott made a bid on Nov. 18 to pay 0.80 Swiss francs for each Aryzta share, the hedge fund said. That is equivalent to a 27% premium to the closing price of 0.629 per Aryzta share on the same day.

The financing for the potential offer is available and refinancing arrangements for the company’s existing debt are at a very advanced stage, Elliott said, adding that it would need Aryzta’s board to recommend the offer.

In a Nov. 23 letter sent to the Aryzta chairman and board and seen by Breakingviews, Cobas Asset Management, which holds close to 10% of Aryzta’s shares, said it has no intention to tender its shares at Elliott’s offered price, as “it significantly undervalues the company”.

Shares of Aryzta were trading at 0.68 Swiss francs at 1302 GMT on Nov. 24.

Context News

Elliott Advisors on Nov. 23 said it had made a proposal to acquire Aryzta, the Swiss-Irish maker of Otis Spunkmeyer cookies, for 793 million Swiss francs (733 million euros).

Elliott made a bid on Nov. 18 to pay 0.80 Swiss francs for each Aryzta share, the hedge fund said. That is equivalent to a 27% premium to the closing price of 0.629 per Aryzta share on the same day.

Shares of Aryzta were trading at 0.68 Swiss francs at 1302 GMT on Nov. 24.

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