InsideArbitrage Potential Deal Alert: Danone Offers to Buy Lifeway Foods (LWAY) for $25 Per Share

POTENTIAL DEAL DETAILS

Danone North America PBC, a wholly owned subsidiary of Danone SA, offered to buy Lifeway Foods (LWAY) for $25 per Lifeway share, in all cash, according to a letter to shareholders.

Lifeway Foods, Inc. Investor Relations

Danone North America PBC Investor Relations

Update(s):

November 5, 2024: Lifeway Foods (LWAY) announced that its Board has rejected the unsolicited proposal made by Danone North America PBC. The Board determined that Danone’s proposal undervalues Lifeway. In addition, in response to Danone’s proposal, the Board adopted a shareholder rights plan, effective immediately. Under the Rights Plan, Lifeway will distribute to its shareholders one preferred share purchase right for each outstanding share of Lifeway common stock to shareholders of record at the close of business on November 18, 2024.

November 7, 2024: Lifeway Foods’ (LWAY) shareholders and members of the founding family Edward and Ludmila Smolyansky said that they strongly support Danone’s offer and asked Lifeway to reconsider it.

November 15, 2024: According to a 13D filing, Danone increased its offer for Lifeway Foods (LWAY) to $27 from $25 a share. The proposed deal would be wholly funded in cash from existing cash reserves and not contingent on any financing requirements.

November 20, 2024: Lifeway Foods (LWAY) announced that its Board has rejected the revised unsolicited proposal made by Danone North America PBC to acquire all the shares of Lifeway that it does not already own for $27.00 per share. The Board determined that Danone’s revised proposal substantially undervalued Lifeway and was not in the best interests of the company and its shareholders or other stakeholders.

November 22, 2024: Edward and Ludmila Smolyansky called for Lifeway’s (LWAY) board to establish an independent special committee to evaluate and negotiate a transaction with Danone or other potential buyers.

November 26, 2024: Lifeway Foods (LWAY) provided additional information regarding the reasons that its Board rejected the revised unsolicited bid by Danone. The Board determined that Danone’s $27.00 per share proposal substantially undervalues the Company, however, the Board is not opposed to the sale of the Company at any price.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.