15 May 2007 22:18 [Source: ICIS news]
HOUSTON (ICIS news)--Shares of GE’s company stock closed 0.11% higher on Tuesday at $36.64 on the New York Stock Exchange after information circulated in the media that four bidders had offered up to $12bn (€ 8.88bn) for the GE Plastics division.
The stock climbed to a day high of $37.20 per share before sliding to close.
A spokesperson for GE acknowledged overhearing the information but provided no comment on the bidders.
A source close to the situation said the reported bid of $12bn “seemed a bit too high”.
GE expects a winner or winners to be announced by the end of June, with the deal to be closed no later than the third quarter.
The four bidders were said to be Saudi Basic Industries Corporation (SABIC), the largest Middle East publicly-traded company; the New York-based fund Apollo Investment Corporation; Access Industries’ plastics maker Basell; and Koch Industries, which reportedly formed a bid with the Blackstone fund, according to the Financial Times.
The companies rumoured to be bidding were contacted by phone and e-mail, but did not comment on the situation. Goldman Sachs, which is managing the sale, was reached but officials were not available for comment.
Final bids were said due on Monday, as reported by ICIS news.
A banker on Friday said Apollo, SABIC and Basell had each submitted bids at an estimated value of some $12bn.
(Additional reporting by Al Greenwood.)
($1 = €0.74)
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