US chemical company A Schulman launches $563 mn unsolicited bid for Ferro Corp
04 Mar 2013
US chemical company A Schulman Inc today launched a $563 million unsolicited cash and stock bid for rival Ferro Corp.
Under the proposed deal, Ohio-based Schulman has offered to pay $6.50 per Ferro share, including $3.25 in cash and $3.25 worth of A Schulman common stock.
The takeover offer represents a 25 per cent premium over the closing price of Ferro common stock on 1 March and a 32 per cent premium over its volume-weighted average trading price over the preceding 60-day period.
A Schulman made the offer for Ferro in a letter on 13 February 2013, which Ferro's Board rejected and expressed their belief that the company should remain independent.
A Schulman had first contacted Ferro in November 2012.
"A Schulman and Ferro are both recognised leaders in specialty chemicals with value-added product lines, similar business models, complementary competencies, markets and applications," said Joseph M Gingo, chairman, president and chief executive of A Schulman.