Czech Billionaire Kretinsky’s $6.5 Billion Bid for Metro Fails

(Bloomberg) -- Czech billionaire Daniel Kretinsky failed to win shareholder backing for his 5.8 billion-euro ($6.5 billion) bid for Metro AG, damping hopes for a turnaround of the struggling German wholesaler.

Kretinsky and Slovakian partner Patrik Tkac’s offer didn’t reach the minimum level required by Wednesday’s deadline, with 41.7% of Metro’s ordinary shares issued in favor of the deal, short of the 67.5% needed, according to a statement Friday. Signs were clear that the transaction was unlikely to go through, after talks with two groups representing families of the founders this week failed to result in their support.

Their bid valued the company at 16 euros per ordinary share and 13.80 euros per preferred share. Metro shares closed at 14.25 euros in Frankfurt trading Friday.

European brick-and-mortar merchants like Metro are struggling to contend with the rise of Amazon.com Inc. and discount chains Lidl and Aldi. Once one of the world’s biggest retailers, Metro has struggled since splitting off from its Ceconomy electronics arm two years ago, a move that was designed to boost the shares of both but backfired. The food business has lost market share to discount grocers and it has been dragged down by its exposure to Russia, where sanctions and a low oil price made business difficult.

Kretinsky -- who has a net worth of at least $3 billion, according to the Bloomberg Billionaires Index -- has built a portfolio that includes energy and media assets alongside the Sparta Prague soccer team. He acquired a stake in French newspaper Le Monde last year.

All Metro shares tendered into the offer will automatically be rebooked, Kretinsky’s EP Global Commerce said in its statement.

To contact the reporter on this story: Anne Riley Moffat in New York at ariley17@bloomberg.net

To contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Kenneth Wong

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