22 April 2013 16:27 [Source: ICIS news]
LONDON (ICIS)--US plastics and resins maker A Schulman called on Monday for the management of Ferro to seriously consider its takeover offer for the specialty chemicals firm, adding that it is open to revising its bid.
Schulman rejected Ferro’s characterisation of its $6.50 (€4.94) per share takeover bid for the company as a “low-ball” offer, but said it would be willing to adjust the offer following due diligence investigations into Ferro’s financials.
“Our proposal is not a 'low-ball' offer, and we have publicly stated that we are open to revising the terms and structure of our initial offer, provided we are given an opportunity to conduct customary due diligence and engage in a meaningful dialogue with Ferro,” said A Schulman CEO Joseph Gingo.
The board has found itself embroiled in a proxy fight with some of its shareholders, who stated that Schulman’s bid was too low, but that Ferro should not have dismissed the offer without attempting to negotiate a higher price.
Key among those shareholders are US hedge fund Frontfour Capital, and chemical industry investor Quinpario Partners.Schulman added that a “large majority” of the shareholders it has contacted believe that Ferro should have opened negotiations with the company, rather than rejecting the offer outright.
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