Woolworths rejects Iceland buyout bid

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Shares in the Woolworths Group PLC jumped 15 per cent today, on the news that it had rejected a takeover bid from Iceland Foods Ltd for its retail division – owner of the frozen foods supermarket.

Stock rose to 7.66p-per-share, according to Bloomberg.

The chain said Iceland's bid was ‘unacceptable' because it undervalued the company's assets and would have meant unpractical restructuring and pension liabilities.

Iceland Foods Ltd. is owned by Finland-based Baugar – which already holds a ten per cent stake in Woolworths.