logo
Share SHARE
FONT-SIZE Plus   Neg

Georgia Gulf Says Remains Focused On Executing Its Strategy - Quick Facts

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 (GGC) issued a statement regarding Westlake Chemical Corp.'s (WLK) announcement that it has withdrawn its previously disclosed unsolicited proposal to acquire Georgia Gulf.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Earlier today Westlake Chemical said that it has withdrawn its unsolicited proposal to acquire Georgia Gulf following talks with the smaller rival's management.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

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
Follow RTT