Edward and Ludmila Smolyansky Support Danone Bid to Acquire Lifeway Foods (NASDAQ: LWAY)
Danone SA proposed to acquire Lifeway Foods for approximately $283 million ($25 per share in cash) on September 23, 2024. The Lifeway Foods Board rejected the offer on November 6 and implemented a 'poison pill' shareholder rights plan. Edward and Ludmila Smolyansky, significant shareholders and founding family members, expressed strong support for Danone's offer, citing it represents a substantial premium over recent share prices. They urged the board and CEO Julie Smolyansky to reconsider the offer, warning that delays could result in lost value for shareholders, employees, and consumers.
Danone SA ha proposto l'acquisizione di Lifeway Foods per un valore di circa $283 milioni (25 dollari per azione in contante) il 23 settembre 2024. Il Consiglio di Amministrazione di Lifeway Foods ha respinto l'offerta il 6 novembre e ha implementato un piano di diritti per azionisti 'avvelenato'. Edward e Ludmila Smolyansky, azionisti significativi e membri della famiglia fondatrice, hanno espresso un forte sostegno per l'offerta di Danone, sottolineando che rappresenta un sostanziale premio rispetto ai recenti prezzi delle azioni. Hanno esortato il consiglio e il CEO Julie Smolyansky a riconsiderare l'offerta, avvertendo che ritardi potrebbero comportare una perdita di valore per azionisti, dipendenti e consumatori.
Danone SA propuso la adquisición de Lifeway Foods por aproximadamente $283 millones (25 dólares por acción en efectivo) el 23 de septiembre de 2024. La Junta Directiva de Lifeway Foods rechazó la oferta el 6 de noviembre e implementó un plan de derechos para accionistas 'píldora venenosa'. Edward y Ludmila Smolyansky, accionistas significativos y miembros de la familia fundadora, expresaron un fuerte apoyo a la oferta de Danone, señalando que representa una prima sustancial sobre los precios recientes de las acciones. Instaron a la junta y a la CEO Julie Smolyansky a reconsiderar la oferta, advirtiendo que los retrasos podrían resultar en una pérdida de valor para los accionistas, empleados y consumidores.
다논 SA는 2024년 9월 23일 라이프웨이 푸드를 약 $283백만 (주당 25달러 현금)에 인수할 것을 제안했습니다. 라이프웨이 푸드 이사회는 11월 6일에 이 제안을 거부하고 '독소주식' 주주 권리 계획을 시행했습니다. 주요 주주이자 창립 가족 구성원인 에드워드와 루드밀라 스몰리얀스키는 다논의 제안을 강력히 지지하며, 이는 최근 주가에 비해 상당한 프리미엄을 나타낸다고 밝혔습니다. 그들은 이사회와 CEO 줄리 스몰리얀스키에게 제안을 재검토할 것을 촉구하며, 지연되는 경우 주주, 직원 및 소비자에게 손실 가치를 초래할 수 있다고 경고했습니다.
Danone SA a proposé d'acquérir Lifeway Foods pour environ $283 millions (25 dollars par action en espèces) le 23 septembre 2024. Le conseil d'administration de Lifeway Foods a rejeté l'offre le 6 novembre et a mis en œuvre un plan de droits des actionnaires 'pilule empoisonnée'. Edward et Ludmila Smolyansky, actionnaires significatifs et membres de la famille fondatrice, ont exprimé un fort soutien à l'offre de Danone, soulignant qu'elle représente une prime substantielle par rapport aux récents prix des actions. Ils ont exhorté le conseil d'administration et la PDG Julie Smolyansky à reconsidérer l'offre, avertissant que des retards pourraient entraîner une perte de valeur pour les actionnaires, les employés et les consommateurs.
Danone SA hat am 23. September 2024 vorgeschlagen, Lifeway Foods für etwa $283 Millionen (25 Dollar pro Aktie in bar) zu übernehmen. Der Vorstand von Lifeway Foods wies das Angebot am 6. November zurück und setzte einen 'Giftpille'-Aktionärsrechteplan um. Edward und Ludmila Smolyansky, bedeutende Aktionäre und Mitglieder der Gründerfamilie, äußerten starke Unterstützung für das Angebot von Danone, da sie anmerkten, dass es eine wesentliche Prämie gegenüber den jüngsten Aktienkursen darstellt. Sie drängten den Vorstand und die CEO Julie Smolyansky, das Angebot zu überdenken, und warnten, dass Verzögerungen zu einem Wertverlust für Aktionäre, Mitarbeiter und Verbraucher führen könnten.
- Danone's offer values Lifeway at $283 million, representing a premium over current share price
- Support from significant shareholders and founding family members for the acquisition
- Potential strategic value in the growing U.S. kefir market
- Board's rejection and adoption of 'poison pill' could deter potential acquisition
- Internal conflict between management and significant shareholders
- Risk of value loss due to delayed decision-making
Insights
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The timing of this offer ahead of a important earnings release suggests Danone sees significant value in Lifeway's market position. However, the board's resistance and adoption of defensive measures could either force a higher bid or potentially derail the acquisition. The public support from founding family members Edward and Ludmila Smolyansky adds pressure on the board and could influence shareholder sentiment toward accepting the deal.
The split between board members and significant shareholders from the founding family presents a critical corporate governance challenge. The board's adoption of a poison pill without engaging with the premium offer raises questions about their fiduciary duty to maximize shareholder value. This situation highlights the classic conflict between management entrenchment and shareholder interests.
The public statement from Edward and Ludmila Smolyansky creates additional pressure on CEO Julie Smolyansky and the board to justify their rejection of the offer. Their warning about leaving money on the table suggests potential legal challenges if the board's actions are perceived as not serving shareholders' best interests. This governance dispute could lead to proxy fights or shareholder litigation if not resolved.
Edward and Ludmila Smolyansky, significant shareholders and members of Lifeway Foods' founding family, released the following statement in response:
"For nearly four decades, we have fostered Lifeway's growth with careful attention to what is best for the company's future. Today, we strongly support Danone's offer, which represents a substantial premium over Lifeway's recent share price and reflects their confidence in the growing
"As we approach one of most significant and closely watched earnings releases in Lifeway's history, we remain optimistic about the company's potential and believe that Danone's proposal presents a unique opportunity to enhance value for all shareholders.
"We encourage the Lifeway board to carefully and in good faith reconsider Danone's offer and seize this opportunity to deliver lasting value to shareholders, employees, and consumers. CEO Julie Smolyansky and the board need to focus on the tangible, lucrative offer in front of them, not on futile distractions that waste valuable time and resources. The longer they wait, the more money they will leave on the table, to the detriment of all."
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SOURCE Edward and Ludmila Smolyansky
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