140 of Sika AG’s managers have written an open letter to Saint-Gobain Chief Executive Pierre-André de Chalendar, accusing the French construction materials giant of issuing misleading statements in its bid to take over the Swiss maker of building chemicals and adhesives.
In the letter the managers said they continued to “firmly disagree with the takeover attempt,” by the French company, which would face “severe resistance from all sides,” if it continued trying to take control of Sika. “We urge you once more to reconsider your plans, which in our opinion pose great risk for both sides,” the letter said.
Although the intervention is not likely to be decisive in a takeover saga that has landed in the courts, it adds to and highlights the hostility over the deal.
The two companies are in direct competition, and the take over is seen as a conflict of interest by Sika managers. There are also issues such as a lack of strategic and cultural fit which they say “remain unsolved”.
A Saint-Gobain spokesman has dismissed the letter, saying however that the company remains open to further talks. Saint-Gobain last year agreed to buy a 16.1 percent stake from the Burkard-Schenker family that carries 52.4 percent of Sika’s voting rights, enough for control.
The letter asked Saint-Gobain to open talks on alternatives to the plan, which is also opposed by minority shareholders including Microsoft founder Bill Gates’s foundation.