Pillsbury Rejects British Company’s Bid of $5.2 Billion

Pillsbury Co. directors today unanimously rejected an unsolicited $5.2-billion takeover offer by Grand Metropolitan, a British liquor and restaurant conglomerate.

Pillsbury Chairman Philip L. Smith said the board “believes that shareholders would realize greater value by retaining their stake in Pillsbury” and is recommending that shareholders turn down the $60-per-share offer.

Grand Metropolitan officials had no immediate comment on Pillsbury’s action. Stock analysts say Pillsbury could be holding out for a higher offer, or hoping to restructure in an effort to remain independent.