Nippon Sheet Glass (5202.TO) may have trouble raising its bid to an acceptable level for Pilkington (PILK.LN), says analyst.
Says NSG needs to maintain shareholder Sumitomo's support while making an offer attractive enough to keep the Pilkington management. However, notes NSG is likely to be the only bidder as all other potential bidders face competition issues in the heavily consolidated glass industry. NSG had previously offered 150p/share inclusive of the interim dividend, but this was rejected by Pilkington's board. Pilkington -0.2% at 150p.