British retailer Woolworths Group PLC's share price shot up as much as 23 per cent yesterday, after it rejected an offer from Iceland Foods Ltd. for its retail division.
The chain of stores – which sell goods including electrical appliances, homewares and computer games – said it rejected Iceland's bid because it undervalued the company's assets, involved unpractical restructuring and would have saddled the company with pension liabilities.
The boost to shares is a welcome bit of good news for Woolworths, which has suffered from reduced customer spending amid the credit crunch.
Yesterday's bumper performance on the London Stock Exchange decreased Woolworths' share drop this year to 43 per cent, giving the company a value of around £109 million ($203 million U.S.) by market capitalization.
