Currys: JD.com considers takeover bid as Waterstones owner Elliot reviews offer

Currys could soon find itself the centre of a bidding war as Chinese online shopping giant JD.com considers making a takeover offer and Waterstones owner Elliott reviews its bid.

The Chinese ecommerce giant said on Monday that “it is in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys”.

It follows reports in The Telegraph, which said the two retailers have held exploratory discussions in recent weeks around joint ventures, strategic investments and a possible takeover.

The news comes as Elliott is understood to considering making a new cash bid for the electricals retailer after its initial £700m offer was rejected on Friday.

Currys said the bid “significantly undervalued the company and its future prospects” and its board unanimously rejected the approach.

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Elliott confirmed on Monday that it was considering a possible cash offer for the electricals retailer.

It said: “There can be no certainty that an offer will be made for Currys, nor as to the terms on which any offer might be made”.

Elliott has until 16 March to make its decision.

Sky News reported that one of Currys’ leading shareholders is demanding that its board slaps an £800m price tag on the business.

It told the publication the board should hold out for at least 75p-a-share “at a minimum” from Elliott, which is more than the 62p-a-share offer it received last week.

Currys’ share price has been on a downward trend for the past three years, with its value falling by more than a third over the last 12 months.

Last month, the retailer forecast that its full-year profits would rise ahead of expectations, despite UK like-for-likes falling 3% year on year, as it benefitted from stable gross margin and continued cost savings.

CEO Alex Baldock said at the time: “As consumer confidence improves, we’ll be well placed to build on these strong foundations, to benefit shareholders as well as colleagues and customers.”

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