Fletcher Building seeks Crane bid clearance
The Commerce Commission is asked to approve a $A740 million takeover move.
Fletcher Building has applied for approval to buy Australian building supplies company Crane Group, despite having its $A740 million takeover bid knocked back by the target's directors.
The building giant, through its wholly-owned subsidiary Fletcher Building (Australia), is seeking Commerce Commission approval to buy up to 100% of the ordinary shares in Crane Group.
Both companies make and supply a broad range of building materials in New Zealand and Australia.
Fletcher Building wants ASX-listed Crane Group to give it a plastic pipemaking business, to sit alongside its concrete pipe making one.
The clearance application also relates to both parties’ involvement in the distribution of electrical products, plumbing and bathroom/laundry products and safety equipment.
This week Crane Group’s board rejected as “undervalued” Fletcher’s offer of one Fletcher Building share and $A3.43 in cash for each Crane Group share – a total offer of $A9.35 a share. Shares in Crane Group were trading ahead of that at $A9.37 at midday today.
Fletcher Building said it had built a 14.9% stake in Crane ahead of the offer, which was conditional on a 90% acceptance by Crane shareholders
The commission will be considering whether the acquisition could substantially lessen competition in the building supplies market.
Meanwhile, Fletcher has released a 100-page bidder's document.
Georgina Bond
Thu, 23 Dec 2010
Thu, 23 Dec 2010
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Fletcher Building seeks Crane bid clearance
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