Westlake withdraws proposal acquire Georgia Gulf

Westlake withdraws proposal to acquire Georgia Gulf

11:46 AM, 7th May 2012
Westlake withdraws proposal to acquire Georgia Gulf
Albert Chao, President & CEO, Westlake.

HOUSTON, US: Westlake Chemical Corporation following acquisition discussions with Georgia Gulf’s management, notified Georgia Gulf that Westlake has withdrawn its proposal to acquire all of the outstanding shares of common stock of Georgia Gulf and does not intend to continue to pursue a transaction with Georgia Gulf. The company also stated that it plans to liquidate its holdings of Georgia Gulf common stock as market conditions permit.

Westlake had made a $1.1-billion unsolicited takeover bid for Georgia Gulf on January 13, but that offer was rejected. In mid-February, Westlake increased its bid for Georgia Gulf by 17 per cent to $35/share - or $1.3 billlion - and also agreed to offer a portion of the purchase price in Westlake shares. Georgia Gulf rejected the additional offer, mentioning that the revised offer was “far from compelling and does not represent an appropriate price for us to discuss the sale of Georgia Gulf.”

While stating the withdrawal, “We are disappointed in this result but we continue to work on our previously announced important strategic initiatives as well as to look for other opportunities to grow our business. We believe that we are well-positioned for future success,” said Albert Chao, President & CEO, Westlake.

© WOC News

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