Steinhoff’s improved offer for Poundland yesterday is the major retail story in this morning’s papers.

“Activist extracts pound of flesh for discounter” is the headline in The Times (£) after pressure from Elliott Advisors, the US activist investor, which has been building up its stake in Poundland and agitating for a higher price. The Times writes: “Somme market commentators suggested that Steinhoff had engaged in a stand-off with Elliott by offering only a “modest” final offer… If Elliott continues to try to block a deal, Steinhoff and Poundland may be forced to look at options, other than a scheme of arrangement, to structure the offer differently.”

“The 5 pence rise in the Steinhoff bid for Poundland is a pretty modest victory for shareholder activism,” according to independent retail analyst Nick Bubb. (The Daily Mail)

The South African conglomerate has said the new £610.4m cash bid is its final offer and it is now barred under UK Takeover Rules from increasing it further (The Telegraph). Because schemes of arrangement only take into account those who vote, either by proxy or at a special court meeting, if some shareholders choose not to vote at all, Elliott’s stake could already be large enough to derail the takeover. (The Guardian)

The Financial Times (£) notes Elliott has a history of pushing for, and getting, better terms during takeovers. It obtained an improved offer from Anheuser-Busch InBev, the brewer bidding for rival SABMiller, when AB InBev boss Carlos Brito raised his cash offer by £1 last month. Last year it pushed US drug distributor McKesson to up its bid for Celesio, its German rival.

The FT’s Lombard colum looks at the art of “bumpitrage” — the practice of buying into a company subject to a takeover offer and squeezing a small bump in the price from the bidder. “Economists define “rent seeking” as an activity that appropriates value but does not add to it. It’s a pejorative phrase. You might apply it to a short-term investor that turns the screw on a bidder already offering a decent price.” (The Financial Times £)

Elsewhere, Economists believe the UK will be in a mild recession by Christmas, by which time they expect the Bank of England to have cut interest rates even further from their record lows and for the government to have announced a big fiscal stimulus package. (The Times £)

Poor weather in Europe and economic volatility failed to affect Coca-Cola Hellenic Bottling Company as the FTSE 100 soft-drinks maker reported a stronger-than-expected first half. (The Times £)

Turnover among Sports Direct’s salaried UK staff, which includes those employed at its headquarters and managers in its stores, rose by more than three percentage points last year, to 22%, according to its annual report. (The Guardian, The Daily Mail)

“The BHS scandal is far from over, in fact it may only just be starting,” writes Graham Ruddick in The Guardian. “The news that Jones Day has been brought in to investigate the conduct of BHS’s directors in the run-up to its collapse shows that questions remain unanswered.” (The Guardian)

The chief executive of The Restaurant Group has been ousted from his job, to be replaced by Andy McCue, the former boss of Paddy Power. (The Telegraph)

Deliveroo is embroiled in a row over pay with its couriers after dozens of workers staged protests against a new wage structure. The takeaway delivery company said 40 riders had visited its central London office on Wednesday to demonstrate against the changes, which will see workers paid £3.75 per delivery. Previously, they received £7 an hour, plus £1 for each delivery, across London, while workers outside the capital were paid slightly less. (The Guardian)

 

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