rinker shares jump on takeover talk...

Source: www.smh.com.au/business

Rinker shares jump on takeover talk
October 27, 2006 - 6:29PM

Shares in building materials firm Rinker Group Ltd have jumped nearly six per cent on the back of takeover speculation.

The Wall Street Journal has reported Mexico's Cemex SA, the world's third-largest cement company, might be considering an offer for the group.

Rinker said in a statement to the Australian Stock Exchange that it is not aware of any basis for the report.

"We have become aware of an article released online this afternoon by The Wall Street Journal speculating that Cemex SA may be considering making an offer for Rinker," the company's statement said.

"We wish to advise that we are not aware of any basis for that article."

Eighty per cent of Rinker's business is in the US.

Rinker shares closed 83 cents or six per cent higher at $14.70 on Friday, on a volume of about 12.8 million.

There was also significant activity after the market closed, with brokers saying that more than 2.7 million shares changed hands, well above normal levels for the stock.

IG Markets senior trader Harley Salt said Rinker shares had been in negative territory for most of the day after a profit warning from building materials firm Boral Ltd dragged down other stocks in the building sector.

"The profit warning dragged everything down in building materials," Mr Salt said.

"...It (Rinker) was down all day and this article came out just after the close and that's why it jumped."

Rinker's net profit for the three months ended June 30 was $US206 million ($A276.05 million), a rise of 14 per cent.

© 2006 AAP