re: new board for hdr rinker comparison
Different line from the Rinker board ? no friendly Scheme of arrangements or cosy deal there ?
Rinker urges shareholders to reject Cemex bid 29/11/2006 By: Alex King
Rinker Group Limited (RIN) has advised shareholders to reject a takeover bid by Mexico’s Cemex because its bid is highly opportunistic and far too low. The company said that Cemex’s offer of $16.84 per share was well below the valuation of an independent expert that valued Rinker at $20.58 per share.
When Cemex launched their $16.8 billion takeover bid for the Australian construction materials group on 27 October, Rinker labelled the bid as too low and highly conditional.
Rinker said that it hired Grant Samuel & Associates to evaluate the offer who came to the conclusion that the offer was neither fair nor reasonable.
“Rinker is a high quality, strategically important business that warrants a premium multiple in a change of control transaction,” the expert said according to Rinker’s statement.
Rinker reported that its directors had unanimously agreed with the independent experts conclusion and urged shareholders to reject Cemex’s offer.
Chairman John Morsche said that Cemex is seeking to take advantage of a recent decline in the Rinker Share price following a slowdown in US residential construction.
“Your directors acknowledge this slowdown, however, we believe that this is a short-term issue.”
“Whilst the Rinker share price may fall if Cemex’s offer does not proceed, your directors believe that Rinker’s long-term fundamentals are strong and the Rinker share price will reflect this strength in the longer term,” Mr Morschel explained.
Mr Morschel urged shareholders not to surrender their stake in a company that he said is generating excellent returns and has excellent prospects.
The company noted that on 9 November 2006 it recorded a 12% increase in first half net profit to US$410 million.
Rinker also said that its shares had, on average, grown 47% per annum since its demerger from CSR in March 2003.
At 1030 AEST, Rinker was up 20c to $18.26.
HDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
