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		</div><p>South African retailer Steinhoff has upped its offer for UK discount chain Poundland after pressure from a US hedge fund to bump up the deal.</p>
<p>Poundland, which operates as Dealz in Ireland, has agreed to a higher 227p-a-share bid, worth £610.4m including a 2p-a-share dividend, following moves by Elliott Management to build up a 17.5% stake in the group.</p>
<p>Steinhoff had originally agreed a 222p-a-share deal worth £597m last month, but within days the US activist had increased its stake, reportedly with plans to bump up the deal &#8211; so-called &#8220;bumpitrage&#8221;.</p>
<p>Poundland and Steinhoff remained tight-lipped on Elliott&#8217;s involvement in the higher offer.</p>
<p>Darren Shapland, chairman of Poundland, said: &#8220;The Poundland board is pleased to recommend Steinhoff Europe&#8217;s increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price.&#8221;</p>
<p>Steinhoff said its revised offer was final.</p>
<p>Markus Jooste, chief executive of Steinhoff, added: &#8220;By offering Poundland shareholders an improved cash offer we aim to bring certainty to the transaction recognising the strength and value of the business and its management team.&#8221;</p>
<p>Elliott has a track record of &#8220;bumpitrage&#8221; and muscling in on takeovers, having played a part in pushing for a better offer from brewing giant Anheuser-Busch InBev for SABMiller.</p>
<p>It also succeeded in getting a higher offer for Quintain &#8211; the UK property group that developed Wembley Stadium &#8211; last year from US buyout firm Lone Star.</p>
<p>Steinhoff, which owns UK furniture firm Harveys and Bensons For Beds, has been determined to expand further across Europe, having tried and failed to gatecrash two deals in recent months.</p>
<p>It recently lost out in a battle with Sainsbury&#8217;s to buy Argos owner Home Retail Group in March and was outbid for London-listed white goods retailer Darty.</p>
<p>It is backed by South African retail billionaire Christo Wiese, whose Brait investment group also owns controlling stakes in Virgin Active, New Look and food chain Iceland.</p>
<p>Poundland has around 18,000 staff across more than 900 stores and is headquartered in Willenhall, near Wolverhampton.</p>
<p>Steinhoff has already said it has no plans to change the group&#8217;s head office or employment conditions for staff.</p>
<p>The takeover follows a hefty slump in Poundland&#8217;s shares over the past year after tough trading and a difficult takeover of rival 99p Stores.</p>
<p>Annual results recently laid bare Poundland&#8217;s sales woes as underlying pre-tax profits fell 13.5% to £37.8m in the year to March 27, while bottom-line pre-tax profits crashed 83.7% to £5.9m, including converted 99p Stores.</p>
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