13 April 2016 – termination of talks

The US group McCormick has decided to terminate talks with Premier Foods having carried out its due diligence and had talks with Premier’s management team.  The US company has stated that it could not justify making an offer which would satisfy Premier’s board and provide value for its own shareholders.  Premier stated that it believes that it has a strong future as an independent company but the shares seem unlikely to perform in the short-term and we reduce our recommendation to HOLD.