Bakkavor Share Price (BAKK)

I am about to add a comment in similar terms to this one on the chat page for Greencore ("GNC").

I hadn't followed Bakkavor ("BAKK") until 14th March when I became aware of the RNS announcement of the takeover proposal from GNC. Accordingly, I didn't know anything about BAKK apart from the business sector in which it operates and that key directors and/or shareholders are Icelandic. In particular, I had no idea about the identities of its major shareholders.

However, a RNS which BAKK issued at 3:25 pm today provides this information; the directors control 70.52% of the shares excluding options under incentive and bonus schemes. Moreover, just three people - the directors Lydur Gudmundsson, Agust Gudmundsson and Robert Berlin - control 70.29%.

Such an enormous proportion of the shares being held by insiders means that, to all intents and purposes, it is Lydur Gudmundsson, Agust Gudmundsson and Robert Berlin who will decide whether to accept Greencore's takeover offer or an offer from a third party. Funds and institutions who hold shares will have a small influence over the outcome.

I see from Companies House records that Lydur Gudmundsson was born in July 1967, Agust Gudmundsson was born in November 1964 and Robert Berlin was born in December 1965 so their respective ages are 57, 60 and 59. Accordingly, their intentions in terms of retirement dates might influence their decision as to whether or not to recommend any better offer from GNC or any offer from a third party. Indeed, perhaps the timing of GNC's recent approach is not random but opportunistic in that they chose to make it when they did because they suspect that these three gentlemen who in effect control BAKK might have been considering retirement.

The relatively small free float explains why the number of daily trades in BAKK shares and the daily volume of BAKK shares traded is so pitifully low despite GNC's takeover offer. Indeed, even before GNC's approach it was only rarely that more than 200,000 shares were traded on a given day. The huge number of shares held by insiders probably also means that there aren't many private shareholders and that very few of them can be bothered commenting on the ADVN and the London and South East chat boards.

MOZART PRODIGY - Thanks for that. I was aware of a report on Bloomberg either yesterday (Wednesday) or on Tuesday suggesting that Greencore might be upping their bid.

With Greencore's share price falling offering more Greencore shares is likely to be pointless because it's unlikely to have the effect of increasing the claue of their offer. So if they do increase their bid, they'll have to offer more cash.

Yes there was talk yesterday from Rueters that Greencore has upped the bid however no word from the board on that yet...

I'm amazed that nobody apart from me is making comments on either this chat page or on the one for Greencore. In a moment will add a comment in similar terms to this one to the Greencore chat page.

Since my previous comment on 23rd March, Greencore's share price has fallen from 186.2 where it closed on Friday 21st March to 177.4 moments ago. With Greencore shares at 177.4 their offer is now worth 177.78 for each Bakkavor share which is nearly 6.14% less than 189 per share which was the value of their offer at Greencore's closing price of 190.4 on 13 March 2025 on the eve of the official announcement at 1:58 pm on 14th March of their approach to buy Bakkavor.

Moments ago Bakkavor's share price was 181.45. This suggests that the market thinks that a third party might make a better offer than the one from Greencore and/or that Greencore might increase its offer.

I am about to add a comment in similar terms to this one on London and South East's chat page for Greencore ("GNC").

The RNS announcement of the GNC proposal to take over Bakkavor ("BAKK") for a mixture of cash and shares was issued at 1:58 pm on Friday 14th March. I became aware of it late that afternoon, after the market had closed. There was an upwards spurt in the BAKK share price on 14th March but last week it had fallen back until a very surprising last-minute rise of 9.5p in the closing auction on Friday 21st March. Meanwhile, GNC shares have traded in a very narrow range since the announcement.

Last week's low volumes of shares traded in BAKK and GNC and last week's movement in the BAKK share price (except on Friday 21st March in the case of BAKK, especially its large uncrossing trade) give the impression either that the market doesn't expect GNC to improve its proposal or that it does expect an improvement but it doesn't expect BAKK's board to accept any higher offer nor does it expect GNC to go hostile.

GNC's put-up or shut-up deadline expires in just under three weeks at 5pm on Friday 11th April.

In recent months there were lots of comments on the London and South East and the ADVFN chat boards for both TI Fluid Systems and Direct Line Insurance Group after they had received initial takeover approaches, but so far there have been just 3 comments on the BAKK chat boards (2 on ADVFN and 1 on London and South East) and 4 comments on the GNC chat boards (1 on ADVFN and 3 on London and South East). Why is there so much apathy?

Do people expect a higher offer from GNC or a counter-bid from a third party? Or do you think that GNC will pull out?