Edward and Ludmila Smolyansky Support Danone Bid to Acquire Lifeway Foods (NASDAQ: LWAY)

Rhea-AI Summary

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.

Positive

• 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

Negative

• 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

CHICAGO, Nov. 7, 2024 /PRNewswire/ -- On September 23, 2024, Danone SA (OTCQX: DANOY) proposed to acquire Lifeway Foods (NASDAQ: LWAY) in a transaction valued at approximately $283 million, offering $25 per share in cash. However, on November 6, the Lifeway Foods Board of Directors rejected the offer, instead adopting a "poison pill" limited shareholder rights plan.

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 U.S. kefir market — a category we helped build from the ground up.

"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

FAQ

What is Danone's offer price for Lifeway Foods (LWAY)?

Danone offered $25 per share in cash, valuing Lifeway Foods at approximately $283 million.

When did Lifeway Foods (LWAY) reject Danone's acquisition offer?

Lifeway Foods' Board of Directors rejected Danone's offer on November 6, 2024.

What defensive measure did Lifeway Foods (LWAY) implement against Danone's takeover bid?

Lifeway Foods adopted a 'poison pill' shareholder rights plan as a defensive measure.

Who supports Danone's bid to acquire Lifeway Foods (LWAY)?

Edward and Ludmila Smolyansky, significant shareholders and founding family members, strongly support Danone's acquisition offer.