Having already rejected approaches from Nippon Sheet Glass worth GBP 1.5 and GBP 1.55 per share, the UK“s Pilkington said 15 December 2005 that the improved GBP 1.58 proposal was still too low for th…
Having already rejected approaches from Nippon Sheet Glass worth GBP 1.5 and GBP 1.55 per share, the UK“s Pilkington said 15 December 2005 that the improved GBP 1.58 proposal was still too low for the board to recommend. Nippon Sheet Glass Co. said it was reviewing its position but that there were no talks in progress between the two companies. In a late announcement to the London stock exchange the Japanese group said that there was no assurance a firm offer would be made. Nippon said it was invited to conduct high level due diligence on Pilkington after making an initial approach in November 2005, and that it has held talks with top management. “Nippon Sheet Glass regrets that Pilkington“s Board has rejected its revised proposal, and is currently reviewing its position,” the company said. Pilkington shares closed at GBP 1.445 on 15 December 2005, valuing the company at GBP 2 billion. Most analysts have been looking for a takeout price of between GBP 1.70 – 1.75 a share, with some going as high as GBP 1.80, a figure which would value Pilkington at about GBP 2.37 billion. Given the small size of the increments Nippon has made to its approaches, some observers see little appetite at the Japanese glassmaker for a substantial improvement on its offers, making a hostile bid less likely. Nippon Sheet Glass already owns 20% of the UK group.