Building products group Boral has rejected a formal takeover offer from Seven Group which values the company at $8 billion.
The company, which has been struggling to sell assets following a disastrous foray into the North American market, rejected the $6.50 a share offer which offered shareholders no premium over the latest market price.
Seven already has a measure of control of Boral, in September tightenning its grip on the company, securing two of four new directors appointed to the board.
However it is prevented by corporations law from slowly increasing its shareholding above its current 23.2 per cent stake, a ploy known as ‘creeping’.
Seven said it would be happy if its latest offer resulted in its total interest in Boral rising above 30 per cent.
Boral labelled the offer opportunistic.
“Boral management remain committed to the company’s strategic goals including the transformation targets set across the Group and the ongoing process in relation to its North American portfolio.”
In April the company moved to examine the future of its US fly ash businesses as it continues to deal with fallout from its troubled venture into the North American market.
Previously in October Boral agreed to sell its half share in a key building products venture USG Boral for $1.43 billion.
USG Boral is the company’s venture with Germany-based Gebr Knauf KG, which includes the important plasterboard businesses in Australia, New Zealand, Asia and the Middle East.
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