Pilkington rejects new 2.1 bln stg bid proposal

Date: 16 December 2005
Source: Reuters

Date: 16 December 2005

British glass maker Pilkington Plc rejected a revised 158 pence per share bid worth 2.08 billion pounds ($3.68 billion) from Japan's Nippon Sheet Glass Co Ltd on Thursday.

"Pilkington has considered the revised proposal and has informed NSG that the pre-conditions are unacceptable and the price still falls short of a level which it would be prepared to recommend," the company said in a statement.

Nippon Sheet Glass said later it regretted Pilkington's decision and added it was reviewing its position.

"There are currently no discussions ongoing between the two companies, and there can be no assurance that an offer for Pilkington will be made," Nippon Sheet Glass said in a statement.

On Nov. 3, Pilkington first said it had received an approach from Nippon Sheet Glass about a possible cash offer worth 150 pence per share inclusive of the interim dividend. It rejected the proposal.

"Pilkington subsequently received a verbal proposal from NSG at a level of 155 pence in cash per share followed by a written

(revised) proposal at 158 pence in cash per share. The revised proposal is subject to a number of pre-conditions including the completion of financing," it said.

Pilkington shares closed 3.5 percent lower at 144-1/2p

Also on Nov. 3, Pilkington posted a 22 percent rise in first-half pretax profit to 99 million pounds as revenue from both building products and the automotive sector increased.

The 179-year-old Pilkington is poised to enter the final stage of a three-part turnaround strategy, having slashed costs and cut its workforce by 15,000 staff to 24,000 since the mid-1990s as it focuses on its main car and construction markets.

600450 Pilkington rejects new 2.1 bln stg bid proposal glassonweb.com

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