Steinhoff International may have to increase its £600m bid for the retailer amid pressure from US hedge fund, Elliot.
Steinhoff, which failed in previous bids for Home Retail Group, may now face a challenge in its pursuit of Poundland, it has emerged.
Elliott, a rebel shareholder, has reportedly boosted its stake in the retailer to 17.5%, and is now the company’s second biggest investor behind Steinhoff, the Daily Telegraph reported.
Elliott believes Steinhoff’s 220p per share agreed offer for Poundland is inadequate, the newspaper cited unidentified senior City sources as saying. The Telegraph also cited “sources close to Steinhoff” as saying the group was determined not to overpay for acquisitions.
Poundland shares fell 0.42p, or 0.19%, to 224.08p.