Georgia Gulf Corp. (GGC) issued a statement regarding Westlake Chemical Corp.'s (WLK) announcement that it has withdrawn its previously disclosed unsolicited proposal to acquire Georgia Gulf.
In the statement, Georgia Gulf said it remains focused on executing its strategy and is confident that it is well positioned to create significant value for its stockholders.
"As recently announced, the Company's first quarter 2012 operating results were the best Georgia Gulf has reported for the first quarter in the past six years, which demonstrates our ability to generate stockholder value even in a period of volatile macroeconomic conditions and a slow housing market," said Paul Carrico, President and Chief Executive Officer.
Earlier today Westlake Chemical said that it has withdrawn its unsolicited proposal to acquire Georgia Gulf following talks with the smaller rival's management.
Westlake also said it now plans to sell its stake in Georgia Gulf stock as "market conditions permit". Westlake holds about 4.8 percent of Georgia Gulf's outstanding shares.
The latest development follows Georgia Gulf's rejection of a sweetened $35 a share offer from Westlake in February.
On February 1, Westlake lifted its offer to acquire all the shares of Georgia Gulf to $35 a share. It was $5 more than the initial bid of $30 offered by the Houston, Texas-based Westlake on January 13. The sweetened offer represented a 43 percent premium to Georgia Gulf's closing stock price of $24.48 on January 12.
Westlake had first made the offer on September 30, but publicly disclosed it only on January 13 because of continued rejection of the offer and unwillingness to engage in substantive discussions by Georgia Gulf.
by RTT Staff Writer
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