Pilkington still in talks with Nippon Sheet

Date: 10 January 2006
Source: Reuters

Date: 10 January 2006

Glassmaker Pilkington is still in talks over a possible takeover bid from Japan's Nippon Sheet Glass Co.

Ltd., a source familiar with the discussions said on Monday.The source said the two sides have set no deadline for the negotiations.By 9:40 a.m., shares in Pilkington were down 3.5 percent at 145 pence, partially recovering from an earlier 5 percent fall triggered by a newspaper report over the weekend that the company was preparing to issue a statement to declare the end of the talks.In December, Pilkington rejected an indicative cash offer worth 158 pence a share, or 2.1 billion pounds ($3.7 billion), from Nippon Sheet, having earlier turned down two lower bid proposals.Pilkington said then that the price, which was raised from the initial offer worth 150p per share and the second verbal proposal at 155p in cash per share, still fell short of a level that it would be prepared to recommend.Nippon Sheet already owns 20 percent of Pilkington.Shares of Pilkington have dropped around 8 percent from an eight-year high of 160p it hit in early December.The 180-year-old Pilkington is poised to enter the final stage of a three-year 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.Glassmaker Pilkington is still in talks over a possible takeover bid from Japan's Nippon Sheet Glass Co. Ltd., a source familiar with the discussions said on Monday.

The source said the two sides have set no deadline for the negotiations.

By 9:40 a.m., shares in Pilkington were down 3.5 percent at 145 pence, partially recovering from an earlier 5 percent fall triggered by a newspaper report over the weekend that the company was preparing to issue a statement to declare the end of the talks.

In December, Pilkington rejected an indicative cash offer worth 158 pence a share, or 2.1 billion pounds ($3.7 billion), from Nippon Sheet, having earlier turned down two lower bid proposals.

Pilkington said then that the price, which was raised from the initial offer worth 150p per share and the second verbal proposal at 155p in cash per share, still fell short of a level that it would be prepared to recommend.

Nippon Sheet already owns 20 percent of Pilkington.

Shares of Pilkington have dropped around 8 percent from an eight-year high of 160p it hit in early December.

The 180-year-old Pilkington is poised to enter the final stage of a three-year 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 still in talks with Nippon Sheet glassonweb.com

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