(Alliance News) - Van rental firm Redde Northgate PLC has made a GBP1.4 billion merger approach to bicycle and car supplies and repair shop chain Halfords Group PLC, according to a report in the Telegraph on Monday.
The newspaper said the two companies have held detailed talks over a possible tie-up, culminating in Redde Northgate making a firm proposal to Halfords.
This follows a breakdown in negotiations due to disagreements over price after Redde Northgate proposed a no-premium merger, the Telegraph reported citing a City source. Halfords felt it was undervalued as a company by such a deal, the source said.
The UK Takeover Panel was informed of the discussions, which took place in the past few months, the Telegraph reported, adding it is believed that Redde Northgate could make a fresh bid if the valuation gap between the two companies closes.
Shares in Redde Northgate were down 1.2% to 360.00 pence each in London on Monday late morning, while Halfords shares were down 0.9% to 232.00p each. Redde Northgate has a GBP826.1 million market capitalisation, while Halfords equity is valued at GBP507.9 million.
By Greg Rosenvinge, Alliance News senior reporter
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