Disgruntled Lifeway Foods investors Edward and Ludmila Smolyansky have again backed the efforts of fellow shareholder Danone to buy Lifeway Foods outright.

On Friday (15 November), Danone upped its bid to acquire the US dairy and kefir products maker after having an earlier offer rejected.

In a statement to Just Drinks, Edward and Ludmila – the brother and mother of Lifeway chair, president and CEO Julie Smolyansky – said they “strongly support Danone’s offer” as it “represents a substantial premium over Lifeway's recent share price”. 

Last week, the French giant sweetened its bid by offering approximately $27 per share to acquire the remaining shares in Lifeway it does not already own. At present, Danone holds about 23.4% of Lifeway’s common shares.

Danone made its fresh offer after Lifeway rejected an initial bid of $25 per share, arguing it “substantially undervalued” the business. 

The Activia maker said its new bid represented a 72% premium over the three-month volume-weighted average price of Lifeway's shares prior to the initial proposal on 23 September. 

In a letter to Julie Smolyansky published on Friday, Shane Grant, Danone's deputy CEO, expressed “disappointment” about Lifeway's board's response to the initial proposal.

He insisted the revised offer “fully reflects the fundamental potential” of Lifeway and offers shareholders “the certainty of an attractive and immediate cash premium”. 

Edward and Ludmila argued “Danone's proposal presents a unique opportunity to enhance value for all shareholders”. 

They urged the Lifeway board to “carefully and in good faith" reconsider Danone's bid, emphasising the importance of focusing on the “tangible, lucrative offer”. 

For its part, Lifeway said on Friday it had received Danone's “revised, unsolicited, non-binding proposal” and it would carefully evaluate the new bid. 

The interest from Danone comes amid a long-standing family dispute over Lifeway's control and leadership.  

In August, Edward and Ludmila filed a consent statement to replace the company's current board, including CEO Julie.  

They aimed to bring in leadership “committed to revitalising the company with a strategic vision aligned with the best interests of its shareholders”.