Adnoc Weighs Boosting Covestro Bid Again to €11.6 Billion - Bloomberg
Abu Dhabi National Oil Co. indicated it’s prepared to boost its informal offer for Covestro AG to about €11.6 billion ($12.7 billion) on the condition the German chemicals group agrees to enter formal talks, people with knowledge of the matter said.
The state-backed energy giant has verbally signaled to Covestro that it could come back with a new, written proposal of €60 per share, should such a bump get negotiations started, the people said. An offer at that level would represent a premium of about 29% to Covestro’s closing share price on Friday.
Covestro’s management and supervisory board are considering their options and may respond as soon as this week, the people said. Shares in Covestro rose as much as 8.8% on Monday. The stock was up 5% at 2:23 p.m. in Frankfurt, giving the company a market value of about €9.4 billion.
Any such move by Adnoc would improve previous informal bids of €55 and €57 per share. The most recent of these, submitted in July, is still seen as too low by Covestro, according to the people. Both companies and their advisers have continued to discuss the merits of a transaction, they said.
As well as price, Adnoc has been trying to address other Covestro concerns about a transaction, including how it would help the German company’s management develop the specialty chemical operations, Bloomberg News reported previously.
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