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Lifeway Foods reaffirms rejection of takeover offer by Danone
The Fly

Lifeway Foods reaffirms rejection of takeover offer by Danone

Lifeway Foods (LWAY) announced that its Board of Directors has responded to the December 30, 2024 letter sent to Lifeway by Danone North America PBC (DANOY) reaffirming that the Company rejected Danone’s offer to acquire the Company because it severely undervalues the Company, based on analysis by the Company’s independent financial and legal advisors. The Board reiterated that it is not opposed to a sale at a price that more accurately reflects the true value of the Company. Further, the Company has made clear that the 1999 Stockholders agreement between the Company and Danone violates Illinois law. An agreement that is invalid does not become valid simply because both parties follow its terms for a period of time, no matter how long. The Company intends to pursue all available remedies to enforce Illinois law and nullify the agreement. Given Danone’s unsolicited and opportunistic proposal to acquire Lifeway, the Company and its outside advisors are looking at the relationship between the parties and assessing how to best protect the interests of the Company and its shareholders.

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