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McCormick walks away from Premier Foods, Premier's stock down 30%

Staff writer ▼ | April 13, 2016
McCormick said that it would not be able to offer a price that the Premier Foods board would recommend so it does not intend to make an offer for the Premier Foods.
Acquisition   Premier Foods
"The board sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation," Premier Foods said.

McCormick & Co. said it would not be able to propose a price that the company would agree on, while delivering appropriate returns for its own shareholders.

McCormick & Company in March raised its offer for the U.K.’s Premier Foods to 65 pence a share.

The offer valued the company that bought Cadbury’s snack business and owns other traditional U.K. brands such as Mr Kipling’s cakes at 1.5 billion pounds ($2.2 billion), including debt.

Shares in Premier Foods crashed by 30% in early trade after McCormick walked away.