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BASF extends Engelhard bid to March 3
BY MATT MOORE ASSOCIATED PRESS
FRANKFURT, Germany -- Chemical company BASF said Monday that it has given shareholders of Engelhard Corp. another chance to respond to its unsolicited $4.9 billion takeover offer.
The initial deadline had been Monday but after the Federal Trade Commission signed off on the deal, the Ludwigshafen-based company opted to extend it to March 3.
Engelhard, a specialty chemicals company based in Iselin, reiterated its rejection of BASF's offer, which it described as "inadequate."
BASF, which has its North American headquarters in Florham Park, launched the $37 per share bid on Jan. 3. Last week, the German company said it was prepared to raise its takeover offer to as much as $38 a share. It also said it is seeking two seats on Engelhard's board of directors.
Englehard shares are trading above the offer. Its shares fell 31 cents to close at $77.34 in trading on the New York Stock Exchange.
BASF said that nearly 55,000 shares of Engelhard common stock had been tendered by Friday evening. Engelhard said that meant less than 1 percent of its outstanding shares had been tendered.
"We believe that the response to BASF's unsolicited tender offer demonstrates that Engelhard stockholders recognize the offer is inadequate and that our exploration of strategic alternatives has the potential to create value greater than BASF's offer," Engelhard said in a statement.
"We appreciate the continued support of our stockholders as we seek to maximize value on their behalf," it added.
BASF said the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired and it expected European Union and related regulatory approvals by the end of this month.
Last week, Engelhard reported a 10 percent rise in fourth-quarter profits, largely on sales of its emission control devices. The company earned $63.8 million in the last three months of 2005.
BASF shares slipped 0.1 percent to close at 64.47 euros ($77.55) on the Frankfurt exchange.
BASF extends Engelhard bid to March 3
BY MATT MOORE ASSOCIATED PRESS
FRANKFURT, Germany -- Chemical company BASF said Monday that it has given shareholders of Engelhard Corp. another chance to respond to its unsolicited $4.9 billion takeover offer.
The initial deadline had been Monday but after the Federal Trade Commission signed off on the deal, the Ludwigshafen-based company opted to extend it to March 3.
Engelhard, a specialty chemicals company based in Iselin, reiterated its rejection of BASF's offer, which it described as "inadequate."
BASF, which has its North American headquarters in Florham Park, launched the $37 per share bid on Jan. 3. Last week, the German company said it was prepared to raise its takeover offer to as much as $38 a share. It also said it is seeking two seats on Engelhard's board of directors.
Englehard shares are trading above the offer. Its shares fell 31 cents to close at $77.34 in trading on the New York Stock Exchange.
BASF said that nearly 55,000 shares of Engelhard common stock had been tendered by Friday evening. Engelhard said that meant less than 1 percent of its outstanding shares had been tendered.
"We believe that the response to BASF's unsolicited tender offer demonstrates that Engelhard stockholders recognize the offer is inadequate and that our exploration of strategic alternatives has the potential to create value greater than BASF's offer," Engelhard said in a statement.
"We appreciate the continued support of our stockholders as we seek to maximize value on their behalf," it added.
BASF said the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired and it expected European Union and related regulatory approvals by the end of this month.
Last week, Engelhard reported a 10 percent rise in fourth-quarter profits, largely on sales of its emission control devices. The company earned $63.8 million in the last three months of 2005.
BASF shares slipped 0.1 percent to close at 64.47 euros ($77.55) on the Frankfurt exchange.
posted by Jones Lang LaSalle NJ News Blog at 10:42 AM
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