Electrical goods retailer Currys has rejected a takeover approach from US investment firm Elliott.

Currys, which operates more than 800 stores globally and employs 28,000 people, said the offer valued the business at about £700m.

But the proposal "significantly undervalued" the company, Currys told the BBC last night.

Elliott has a reputation as an activist investor, meaning it pursues companies in order to take them over and change how they are run.

In 2018, it bought UK book shop chain Waterstones for an undisclosed amount.

Elliott has said it is now considering whether or not to make a formal offer for Currys, and under UK takeover regulations it has until 16 March to decide.

Like many High Street businesses, Currys has been struggling with falling sales as customers cut back on spending.

Last month, the company said like-for-like sales - which strip out the impact of store openings and closures - fell 3% over the key Christmas trading period.

Despite this, cost-cutting measures meant that Currys increased its profit forecast for the year.

However, shares in Currys have fallen by more than a third over the past year and on Friday they closed at 47.08p, valuing the business at about £534m.

In a statement, Currys said that its board had considered the "unsolicited" proposal from Elliot and "concluded that it significantly undervalued the company and its future prospects".

FTSE 100

The UK's flagship share index, the FTSE 100, was down two-points at 7,709 shortly after opening this morning.

Brent crude oil futures was down 0.66% today, trading at $82.92 a barrel.

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