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AWG rejects latest takeover bid |
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Written by Business Weekly
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Monday, 28 April 2003 |
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AWG Plc, the water services and infrastructure management group, has rejected the latest takeover proposal from German bank, WestLB, of £961m ($1.5bn) claiming it had fallen "well short of an acceptable price."
AWG Plc, the water services and infrastructure management group, has rejected the latest takeover proposal from German bank, WestLB, of £961m ($1.5bn) claiming it had fallen "well short of an acceptable price." WestLB's bid vehicle, Bream, submitted an improved all-cash deal in the range of 520p to 545p a share – up from 510p a share – but AWG feels this remains short of the mark. AWG has made it clear that it would be prepared to consider any proposal that was "in the interests of its shareholders and was capable of being delivered without a mandatory reference to the Competition Commission,” a concern for AWG because of WestLB's interests in Mid Kent Water. The German bank's advisers have held informal talks with AWG and informed the Huntingdon business that the proposed structure of a deal would not give rise to a mandatory reference. On the issue of value, WestLB was disappointed that AWG's board had refused to take part in formal discussions. It has stepped up its campaign to allay the fears of AWG shareholders and appears determined to pull off the deal. |
