Saint-Gobain set to make fresh £4bn offer for BPB

BPB, the world's leading plasterboard business, is on full alert for an offer of more than £3.5bn for the company from Saint-Gobain, its French rival.

The offer is expected when Jean-Louis Beffa, the chairman and chief executive of Saint-Gobain, has a further face-to-face meeting with Sir Ian Gibson, the chairman of BPB.

The last time the pair met, two weeks ago, Beffa outlined a proposed offer for the company of 675p per share in cash, valuing BPB at £3.4bn.

BPB dismissed the offer as "substantially" undervaluing the company. BPB believes its business is in a strong position and that its shareholders would not be willing to settle for less than 800p per share, valuing the company at £4bn.

The BPB share price is currently 714p, but executives familiar with the situation believe that Saint-Gobain will have to offer at least 750p to be taken seriously.

Besides meeting BPB, Beffa will address analysts and institutional shareholders in London and present his case.

Beffa will tell analysts that BPB would be an ideal fit alongside SG Insulation, Saint-Gobain's interior insulation business. The two companies' products are often used together in building interiors and Beffa will stress the high growth, profitability and strong free cash flow that could be generated by combining them.

One executive close to the French company said yesterday: "Beffa is trying to show his shareholders that strategically buying BPB is a fantastic opportunity, that it is a great company and that its management is fantastic but that he is not going to overpay. He is trying to condition the UK market not to expect a big number."

BPB agrees that it is in a strong position with huge opportunities to take a bigger share of the plasterboard market, which is growing by more than 5 per cent per year.

Some analysts argue that BPB is worth around 740p per share or £3.7bn - equivalent to 8.7 times earnings before interest tax depreciation and amortisation. This is a similar valuation to that put on Aggregate Industries, the UK quarry products group, bought for £1.8bn by Holcim of Switzerland.

600450 Saint-Gobain set to make fresh £4bn offer for BPB glassonweb.com
Date: 1 August 2005
Source: Telegraph.co.uk

See more news about:

See more from these topics:

Others also read

Over the last five years, Sandton (South Africa) has been a magnet for large-scale developments. Designed by Boogertman + Partners Architects, the 85 000 m2 Discovery building is one of them.
Compagnie de Saint-Gobain’s Board of Directors decides to propose the renewal of the Director’s term of office of Mr. Pierre-André de Chalendar and to co-opt Ms. Dominique Leroy, CEO of Proximus, as an independent Director.
Vetrotech supplied over 1'600m2 of Contraflam Lite Structure EW30 solutions.
The glazed walkway at London’s Tower Bridge attraction, which was designed and manufactured by GLASSOLUTIONS, has been voted as winner of MyGlazing.com’s ‘Best window with a view 2017’ competition.
Architects Pelli Clarke Pelli specified the most demanding requirements for a fire-rated glass floor and skylight to date for this project including 2-hour fire rating, blast, and seismic resistance, live loading for foot traffic, and waterproofing.
WICONA, the specialist manufacturer of glazing and glass curtain walling, has worked with specialist contractor GLASSOLUTIONS to deliver the glazing and facades package for One Bedford Avenue, a flagship mixed use development in Central London.

Add new comment