#hostile bid

[cdsix]

Schumer questions hedge fund president about proposed Gannett purchase

The Senate minority leader wants Digital First Media to explain its plans for Gannett.

[alphst]

Barrick Gold plans hostile bid for Newmont Mining

Barrick Gold plans hostile bid for Newmont Mining

Canadian gold mining company Barrick Gold Corporation (GOLD) is said to be planning a hostile bid for Newmont Mining Corporation (NEM) valued at around $19 billion in stock, according to reports by Reuters and Globe and Mail.

The report stated that Barrick might retain Newmont’s mines in Nevada and Africa while opting to sell its Australian assets to Newcrest Mining Limited (ASX: NCM). If the…

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[cdsix]

Hedge fund’s ambition to dominate newspaper industry raises fear of a local news 'death spiral'

As Digital First Media makes hostile bid for newspaper industry dominance, here's how its ownership of the Denver Post has fared

[cdsix]

Hostile Bid for Gannett Rattles Some in the Newspaper Business

The hostile takeover bid for Gannett has stoked fears that an industry already reeling from years of cutbacks could be in for even more severe cost-cutting.

[yidamweb-blog]

The deck appears to be loaded against PPG, as it attempts to buy AkzoNobel. PPG's call for an EGM to oust AkzoNobel's chairman has been rejected by a Dutch court.

The writing on the wall appears to be clear for PPG Industries. Its bid to acquire AkzoNobel is hitting roadblock after roadblock. One wonders whether PPG did not do its homework in advance before mounting its bid for AkzoNobel?

[yidamweb-blog]

On 22nd May 2017, PPG Industries filed Form 425 with the U.S. SEC over its proposed combination with Akzo Nobel. Pursuant to this filing, PPG also issued a statement that the Company has approached the Enterprise Chamber at the Amsterdam Court of Appeals, alleging that Akzo Nobel has been stonewalling its attempts for talks of a possible combination with PPG.

Any story about two corporate biggies battling it out for supremacy in the market place, makes for thrilling news. And this particular story is no different. It is about two paint manufacturing companies. One, PPG, is based in the U.S., and the other, AkzoNobel, is based in The Netherlands. PPG wants to buy AkzoNobel; and the other has no inclination to be bought. So PPG is now instigating AkzoNobel’s shareholders to raise a cry of revolt against the management of AkzoNobel, charging it of mismanagement. 

How will the story unfold? Wait and watch.

[thedealnewsroom]

The gloves are coming off in Westlake-Axiall proxy fight

Westlake CEO Albert Chao claims that “Axiall is continuing to pursue a value-destroying standalone strategy.”

by Claire Poole

Westlake Chemical Corp. on Monday said it would launch a proxy fight to replace the board of vinyl building products maker Axiall Corp. after Axiall rejected its 16.7% sweeter $3.1 billion takeover bid.

The new offer includes $14 in cash and 0.1967 of a Westlake share for each Axiall share valued at $23.35 per share. The proposal represents a 143% premium over Axiall's closing trading price on Jan. 20 of $9.60 before Houston-based Westlake made its original $20 per share offer.

The $3.1 billion total includes the assumption of around $1.5 billion in debt at the end of last year.

In a letter to Axiall shareholders, Westlake CEO Alberto Chao said he had "deep concerns" regarding Axiall's rejection of Westlake's increased acquisition proposal. "I believe this rejection is not in your best interests and Axiall's unreasonable position is putting at risk the benefits you would receive from this financially and strategically compelling transaction," he said.

Chao added that Westlake's increased proposal was based on due diligence that Atlanta-based Axiall "finally allowed us to conduct" having heard directly from shareholders that they should negotiate a transaction with Westlake.

"Unfortunately, despite the compelling nature of this revised proposal and the clear views of many shareholders who want a transaction, Axiall summarily rejected it based on what we view as their totally unrealistic assessment of Axiall's value and future prospects and the combined company's synergies," he said. "Based on these flawed assumptions, Axiall demanded a 'substantially increased proposal value' and refused to make a counter-proposal or otherwise negotiate or provide any constructive feedback."

Chao said nothing has changed in Axiall's outlook that would lead to a standalone valuation "anywhere near the value of our proposal" and claimed that Axiall has consistently overestimated its business' earnings power and has a track record of failing to deliver on its operational and strategic objectives.

"Our increased proposal provides Axiall shareholders with a significantly higher premium, greater certainty through the increased cash consideration of $14 per share and continued upside potential and sharing of synergies via ownership in the combined company," he said. "Given the Axiall board's unrealistic expectations and entrenched position, we feel we have no choice but to proceed today with a proxy contest to replace Axiall's directors with new independent and highly-qualified directors who are willing to evaluate all options in accordance with their fiduciary duties."

Chao claimed Axiall is continuing to pursue a value-destroying standalone strategy, including the sale of its building products assets, which he's worried will negatively impact its remaining businesses given that they're highly integrated with the rest of the company. He said Axiall didn't initially ask Westlake to participate in the building products sales process and only did so after it made shareholders "aware of the omission."

Axiall shareholders urging the company to explore options include Franklin Advisory Services, Shapiro Capital Management Co. Inc. and Brigade Capital Management LP.

Axiall, which is led by CEO Tim Mann, rejected Westlake's previous offer in January, calling the bid "an opportunistic attempt" to take advantage of temporary weakness in its share price. It argued that its own in-house restructuring was the better option, including a plan to cut $100 million in costs and look at options for its building products and aromatics segments.

In February Axiall said it had a deal in place to sell two sets of assets to Galata Chemicals Inc. and private equity firm OpenGate Capital LLC for $41 million.

Westlake threatened the proxy fight in February, saying it intended to nominate a slate of 10 candidates to Axiall's board, including former Arch Chemicals Inc. CEO Michael Campbell, one-time Westlake CFO and current Lion Chemical Capital LLC managing director Ruth Dreessen and previous Nova Chemicals Inc. CEO Randy Woelfel.

It is Westlake's second hostile run at Axiall, which successfully fought off an unsolicited $1.3 billion bid in 2012.

[newsdock]

Canadian pharmaceutical firm Valeant on Friday upped for the second time in a week its hostile bid for Allergan, the US maker of Botox, to $53.5 billion. The new offer translates to $72 per share in cash, plus 0.83 of its shares for each Allergan share. That puts the total value for the bid at about $179 per share in cash and stock, based on Valeant's latest share price. Valeant also announced that Pershing Square, Allergan's largest shareholder with a 9.7 percent stake, has agreed to sell its holdings, but will only take shares and not cash. Source: AFP