QXO sinks after Rexel rejects preliminary takeover proposal

Rexel (RXEEY) yesterday confirmed it has received an “unsolicited, non-binding “preliminary proposal from QXO, Inc.(QXO) regarding a potential acquisition of Rexel at an indicative price of EUR 28.00 to EUR 28.40 per share. Rexel’s board has reviewed the proposal and has “unanimously decided not to pursue it, considering that it significantly undervalues the company and does not reflect its value creation potential through its Power Up 25 strategic plan.” The board said it remains “highly confident in Rexel’s management to deliver the mid-term objectives presented in during the June 2024 Capital Markets Day.” Shares of QXO are down 8% to $13.57 in midday trading.