Schroders says Avast sale price materially undervalues stock

Cybersecurity firm Avast's largest independent shareholder has voiced concerns that the company has undervalued itself in its £6.2bn sale agreement to an American rival.

British asset manager Schroders said the terms of Avast's sale to Arizona-based outfit NortonLifeLock had "materially" undervalued the FTSE 100-listed group, with Sue Noffke, Schroders' head of UK equities, telling The Times that the planned takeover risked the business being sold "too cheaply".

Given Schroders' reputation and 6.3% stake in the software group, the asset manager's criticism of the deal could pave the way for a potential rebellion against the agreement, despite Avast's board already having recommended the terms to shareholders.

As of 0925 BST, Avast shares were up 0.036% at 593.62p.