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CRH Notes Superior Third-party Proposal For Ash Grove Of Up To $3.8 Bln

Building materials group CRH plc (CRH,CRH.L), which is in deal to buy Ash Grove Cement Co. (ASHG), on Friday acknowledged Ash Grove's announcement of a preliminary, non-binding competing takeover proposal from a third party.

CRH noted that the period for obtaining Ash Grove shareholder approval has been extended until October 20.

It was on September 21 that CRH announced its agreement to acquire US-based Ash Grove for a total consideration of $3.5 billion. The proposed transaction remains subject to Ash Grove shareholder and regulatory approvals.

On Thursday, Ash Grove announced that it has received a preliminary, non-binding competing proposal from a third party to acquire Ash Grove at an indicated enterprise value of $3.7 billion to $3.8 billion.

Ash Grove Board has determined that such proposal could reasonably be expected to result in a superior proposal and has determined to engage with such third party regarding its proposal.

Ash Grove said there can be no assurance that such competing proposal will lead to a definitive offer or, if such an offer is made, that the board of directors will determine that such offer is superior to the transaction with CRH plc.

Ash Grove also announced that it has established a record date of October 5, and a meeting date of November 1, for a special meeting of its stockholders to, among other things, consider and vote on a proposal to adopt the previously announced Agreement and Plan of Merger with CRH.

In London, CRH shares were trading at 2,770 pence, down 1.42 percent.

by RTT Staff Writer

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