FLSmidth (OMX: FLS) is entering air pollution control market in China through an agreement with Sino Environment Engineering Development Co., Ltd. (SEPEC) whereupon FLSmidth becomes the majority shareholder in a new company founded be SEPEC. FLSmidth said this positions it immediately as a powerful player in the multi-billion cement industry air pollution control products market.
The Weir Group PLC noted last week that it has withdrawn from the bidding for Ludowici and will make no further offer. Its CEO Keith Cochrane said that while Ludowici represents an attractive opportunity, a materially higher offer would not have met its rigorous financial pertaining to acquisitions. Australian Takeovers Panel’s ruling reprimanding FLSmidth for failing to correct statements from their CEO in a Reuters article has validated Weir’s decision to test the waters.
Despite this the Panel allowed Ludowici’s increased bid to stand. Previous offer from FLSmidth is over 50% higher than its first one, which was back then recommended by Ludowici’s Board. Ludowici noted Weir’s decision and says it is unanimously recommending FLSmidth offer of AUD 11 per share less any dividends paid prior to completion and subject to the absence of a superior offer and an independent expert ruling.
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