August 8, 2019 / 1:22 PM / 4 months ago

Metro investor says bid fails, it's up to management to prove Metro is worth more

FILE PHOTO: German retailer Metro AG sign is seen on the steps of their headquarters in Duesseldorf, Germany March 02, 2018. REUTERS/Thilo Schmuelgen

DUESSELDORF, Germany (Reuters) - Czech businessman Daniel Kretinsky said on Thursday his 5.8 billion euro ($6.5 billion) bid for German wholesaler Metro (B4B.DE) would not succeed and added it was now up to management to show that the company is worth more.

Kretinsky’s investment vehicle EP Global Commerce (EPGC) had already said on Monday that it would not raise its bid after failing to find common ground with Metro shareholders Meridian Stiftung and Beisheim Holding, which hold a nearly 21% stake.

Kretinsky told journalists that EPGC would not raise the 16-euro-per-ordinary-share bid and said all options were now open, adding that he was a long-term investor but he would have to see how the company developed in future.

He said he would wait to see what happens with Metro’s plans to sell its struggling German hypermarket chain Real and find partners for its China business.

EPGC has criticized Metro’s plans to sell Real, valued at about 1 billion euros, to a consortium led by real estate investor Redos because the price was too low.

EPGC bought into Metro when its shares had hit an all-time low last year after the company cut its outlook due to poor performance at its Russian operations.

Once a sprawling retail conglomerate, Metro has in recent years been restructuring to focus on its core cash-and-carry business, selling off the Kaufhof department stores and then splitting from consumer electronics group Ceconomy (CECG.DE).

Reporting by Matthias Inverardi; Writing by Emma Thomasson; Editing by Michelle Martin

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