Orica rejects takeover bid by private equity group

18 April 2007 07:43  [Source: ICIS news]

SINGAPORE (ICIS news)--Australian explosives and chemicals firm Orica on Wednesday said it has rejected a takeover bid by a private equity consortium.

The consortium, comprising Bain Capital, Blackstone Capital, Pacific Equity and Morgan Stanley, had offered to acquire Orica for Australia dollar (A$) 32 ($26.7) per share.

Don Mercer, chairman of Orica, said in a statement that the board believes the bid “significantly undervalues” the company and its growth prospects.

Orica is in the midst of integrating the two firms acquired recently, explosives company Dyno Nobel and UK mining firm Minova, he added.

The company’s shares rose 19.5% to A$33.32 at mid-day trade on the Australian Securities Exchange.

($1 = A$1.20)

By: Jeanne Lim
+65 6780 4359

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