Westlake appeals to Georgia Gulf shareholders in $1bn takeover bid
17 January 2012 14:54 [Source: ICIS news]
HOUSTON (ICIS)--Westlake Chemical on Tuesday appealed to Georgia ?xml:namespace>Gulf's shareholders in its $30/share hostile bid to take over the Atlanta-based polyvinyl chloride (PVC) and building products firm.
“We urge those shareholders to make it clear to Georgia Gulf's board that they should immediately begin negotiations with us about getting a transaction done,” said Westlake.
Westlake was reacting to Georgia Gulf’s rejection of its bid from last week. The bid is valued at more than $1bn (€790m).
Westlake also described Georgia Gulf’s announcement on Monday of a “stockholder rights plan” as a “poison pill” aimed at preventing Westlake’s bid.
“We have made a fair and compelling proposal that offers superior value to Georgia Gulf shareholders as compared to its existing strategy and standalone share price prospects,” said Westlake.
“We have also repeatedly said we would be willing to consider any opportunities that exist to justify increasing our offer,” the US chemicals firm added.
“Unfortunately Georgia Gulf's board has refused to allow us to explore these opportunities and has instead insisted on a standstill arrangement that would unreasonably restrain their shareholders' ability to timely consider our proposal,” said Westlake.
($1 = €0.79)
For more on Westlake, Georgia Gulf and other producers visit ICIS company intelligenceBy: Stefan Baumgarten+1 713 525 2653
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