A number of high-profile shareholders in Aryzta have voiced their opposition to any sale of the company following the recent takeover approach by US private equity fund, Elliott Advisors. Last week, it emerged Elliott had put forward a non-binding takeover proposal of almost €0.75 per share to buy Aryzta, which would value the bakery giant at close to €735m.

Since these details emerged, two of Aryzta’s largest shareholders, Cobas Asset Management and Lodbrok Capital, have both rejected any sale of the company and said the offer by Elliott grossly undervalues Aryzta.

In a letter to the Aryzta board, Lodbrok Capital said it wanted to see the restructuring of Aryzta proceed as planned following the recent board changes.

Separately, Aryzta chair Urs Jordi, who has stepped into the role of interim CEO of the company following the departure of Kevin Toland, said the search for a new CEO for Aryzta is under way but it could take anywhere up to two years.

Aryzta this week reported a 20% drop in sales to €673m for the first quarter of its 2021 financial year, which covers the three-month period to the end of October. Underlying sales declined by 15% in the period as the continued weakness in the foodservice sector (restaurants, cafés, etc) more than offset an improvement in demand from fast food customers and supermarkets.

Aryzta said it had liquidity of circa €445m at the end of October, which comprises €320m in cash reserves and €125m of undrawn bank facilities.