Woolworths Rejects Iceland Foods Bid

Woolworths Group Plc, whose U.K. stores sell goods from appliances to candy, said it rejected a takeover offer from Iceland Foods Ltd. because the bid was too low and would have saddled Woolworths with pension liabilities.

The company also turned down the offer by Iceland Foods, owned by Baugur Group Hf of Iceland, because it involved "complex restructuring," the London-based company said in an e- mailed statement today.

Iceland Foods founder Malcolm Walker and Baugur made a formal offer for Woolworths' 815 stores, the Sunday Telegraph reported, citing unidentified people close to the plan.

The proposal "undervalued the assets of the company and potentially would have adversely impacted the group's existing funding arrangement," Woolworth said in a statement distributed by Tulchan Communications.