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ECC accepts lmetal takeover bid — after raising the price
Additives for Polvmers
tonnes of carbon black. It has 12 carbon black plants in 9 countries and, in October 1998, it acquired the business of the Brazilian producer, Copebras SA, with 170 000 tonnes per year. The company is a business unit of Phelps Dodge Industries, which is the manufacturing division of Phelps Dodge Cot-p, one of the world’s leading producers of copper. Contact: Columbian Chemicals Co, 1800 West Oak Commons Court, Marietta, GA 30062322.53, USA; tel: +I-770 792 9400; fax: +l-770 792 9625
ECC accepts lmetal takeover bid - after raising the price After a vigorous defensive action (which added 576 million to the price), English China Clays has accepted a takeover bid from its French rival, Imetal. The accepted offer is 250~ per share in cash, which is 11% higher than the original bid - but the London stock market was still less than enthusiastic about the new offer. Imetal Chief Executive Patrick Kron said he would consider options for ECC’s Calgon speciality chemicals business (which is estimated to be worth about &160 million) including selling it. The French group approached ECC a few weeks ago but, when the UK company declined to give an immediate answer, Imetal put an offer of 2680 million direct to shareholders. However, the market considered the bid on the low side and it was widely predicted that Imetal would have to raise its offer. Analysts still considered that 270~ a share would have been a more accurate valuation, but Dennis Rediker, ECC’s Chief Executive, insisted that the new offer presented “a fair value”. Defending the original bid, Kron said that ECC’s performance had disappointed its shareholders, with its stock falling from 450~ five years ago to a low of 142.5~ in September 1998. At the time of the bid, the stock was 160~ - and shares rose 50% on news of the offer. He said he believed that the enlarged group would become a low-cost producer in the industry, providing a highquality service based on a wider product offering, a diversified base of reserves and better levels of research and development.
March 1999
Imetal proposes to fund the bid from debt, which will raise its gearing to more than 120% (but this is expected to fall to about 70% in the next three years). Based in Paris, the group has an annual turnover of &1.3 billion equivalent and a market capitalization of around &I billion. It made 30 acquisitions during the past five years. A key figure in the enterprise is the Belgian steel magnate and financier, Baron Albert Fre’ere (who is also currently assisting the takeover of the Belgian oil and plastics group Petrofina by the French oil giant Total, by switching his stake in Petrofina to a 10% share in Total). Fre’ere controls Imetal via a 27% holding by his Swiss investment company, Pargesa and a 23% holding by Fre’ere Group Bruxelles Lambert. The takeover of ECC will give Imetal 20% of the world kaolin market. The French group mines, processes and sells minerals, with a global workforce of about 10 000. ECC employs about 6000 worldwide. Kron said he believed the bid would generate growth in sales and allow savings from rationalization - but he did not indicate how many jobs might be lost. In the UK, ECC is a key employer in Cornwall, where economic development has been particularly depressed in recent years. It is feared, however, that the main impact of any redundancies will be in its operations in North America. ECC’s Denis Rediker is expected to join the management board of the new company; other senior managers are also expected to stay on. ECC International plc, John Keay House, St. Austell PL25 4DJ, UK; tel: +44-l 726 74482; fax: +44-l 726 623019
Rohm and Haas buys Morton International Another takeover in additives and speciality chemicals has been announced: Morton International has been acquired by Rohm and Haas Co. Its $2.5 billion sales will raise Rohm and Haas turnover to $6.5 billion. This will make it the largest pure speciality company in a fragmented industry, ranking either largest or second-largest in a range of product groups, including speciality packaging speciality powder coatings and adhesives,
01999 Elsevier Science
tonnes of carbon black. It has 12 carbon black plants in 9 countries and, in October 1998, it acquired the business of the Brazilian producer, Copebras SA, with 170 000 tonnes per year. The company is a business unit of Phelps Dodge Industries, which is the manufacturing division of Phelps Dodge Cot-p, one of the world’s leading producers of copper. Contact: Columbian Chemicals Co, 1800 West Oak Commons Court, Marietta, GA 30062322.53, USA; tel: +I-770 792 9400; fax: +l-770 792 9625
ECC accepts lmetal takeover bid - after raising the price After a vigorous defensive action (which added 576 million to the price), English China Clays has accepted a takeover bid from its French rival, Imetal. The accepted offer is 250~ per share in cash, which is 11% higher than the original bid - but the London stock market was still less than enthusiastic about the new offer. Imetal Chief Executive Patrick Kron said he would consider options for ECC’s Calgon speciality chemicals business (which is estimated to be worth about &160 million) including selling it. The French group approached ECC a few weeks ago but, when the UK company declined to give an immediate answer, Imetal put an offer of 2680 million direct to shareholders. However, the market considered the bid on the low side and it was widely predicted that Imetal would have to raise its offer. Analysts still considered that 270~ a share would have been a more accurate valuation, but Dennis Rediker, ECC’s Chief Executive, insisted that the new offer presented “a fair value”. Defending the original bid, Kron said that ECC’s performance had disappointed its shareholders, with its stock falling from 450~ five years ago to a low of 142.5~ in September 1998. At the time of the bid, the stock was 160~ - and shares rose 50% on news of the offer. He said he believed that the enlarged group would become a low-cost producer in the industry, providing a highquality service based on a wider product offering, a diversified base of reserves and better levels of research and development.
March 1999
Imetal proposes to fund the bid from debt, which will raise its gearing to more than 120% (but this is expected to fall to about 70% in the next three years). Based in Paris, the group has an annual turnover of &1.3 billion equivalent and a market capitalization of around &I billion. It made 30 acquisitions during the past five years. A key figure in the enterprise is the Belgian steel magnate and financier, Baron Albert Fre’ere (who is also currently assisting the takeover of the Belgian oil and plastics group Petrofina by the French oil giant Total, by switching his stake in Petrofina to a 10% share in Total). Fre’ere controls Imetal via a 27% holding by his Swiss investment company, Pargesa and a 23% holding by Fre’ere Group Bruxelles Lambert. The takeover of ECC will give Imetal 20% of the world kaolin market. The French group mines, processes and sells minerals, with a global workforce of about 10 000. ECC employs about 6000 worldwide. Kron said he believed the bid would generate growth in sales and allow savings from rationalization - but he did not indicate how many jobs might be lost. In the UK, ECC is a key employer in Cornwall, where economic development has been particularly depressed in recent years. It is feared, however, that the main impact of any redundancies will be in its operations in North America. ECC’s Denis Rediker is expected to join the management board of the new company; other senior managers are also expected to stay on. ECC International plc, John Keay House, St. Austell PL25 4DJ, UK; tel: +44-l 726 74482; fax: +44-l 726 623019
Rohm and Haas buys Morton International Another takeover in additives and speciality chemicals has been announced: Morton International has been acquired by Rohm and Haas Co. Its $2.5 billion sales will raise Rohm and Haas turnover to $6.5 billion. This will make it the largest pure speciality company in a fragmented industry, ranking either largest or second-largest in a range of product groups, including speciality packaging speciality powder coatings and adhesives,
01999 Elsevier Science