Aryzta shareholder Lodbrok Capital writes to board to oppose Elliott offer as undervaluing bakery firm    

Aryzta was best known in Ireland as the old Cuisine de France firm before its international expansion in the US and Europe. Picture: Denis Minihane.

A significant shareholder in Aryzta, Lodbrok Capital, has written to its board to warn it is opposed to a takeover offer from Elliott Advisors as seriously undervaluing the Irish-Swiss bakery firm.

Aryzta was best known in Ireland as the old Cuisine de France firm before its international expansion in the US and Europe. After years of boardroom turmoil, it confirmed on Monday it had received a bid from Elliot.

However, Lodbrok Capital, which says it is the largest stakeholder in Aryzta, with a stake of about 4%, said it was concerned by  the "recent developments" and wants the bakery form to remain independent.  

"As a long-term investor, working with experienced industry executives across multiple investments in the bakery industry, we see a significant long-term potential for a re-focused Aryzta given its attractive market positions and well-invested asset base in its core markets," wrote managing partner Mikael Brantberg at Lodbrok. 

He said shareholders had in the past turned down "an opportunistic buyer at a time of maximum weakness" and had "voted for Aryzta to remain independent and to rebuild itself by appointing fresh and experienced leadership to drive a strategy of disposing of non-core assets" and realise value for shareholders.