A Schulman hires investment bank to help with hostile bid for Ferro

22 March 2013 15:01  [Source: ICIS news]

HOUSTON (ICIS)--US plastics compounds and resins firm A Schulman has hired investment bank Moelis & Company to advise on Schulman’s hostile bid for specialty chemicals producer Ferro, it said on Friday.

A Schulman on 4 March bid $6.50/share (€5/share) to acquire Ferro, but Ferro rejected the bid. The offer valued Ferro at $855m, including an equity value of $563m.

Schulman CEO Joseph Gingo added that that since his company announced the bid it had discussions with many Ferro shareholders, “and the overwhelming majority of those shareholders strongly stated that Ferro's board should have entered into dialogue with us concerning our offer.”

"Our offer merits serious consideration by the Ferro board, and we are encouraged by the Ferro shareholder responses," Gingo added.

Ferro's shares were priced up 0.44% at $6.78/share at 10:08 Eastern Standard Time (EST) on the New York Stock Exchange.

Additional reporting by Will Conroy

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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