Gebr Knauf in $6 B Deal with USG Corp, Smurfit Rejects Revised $11 B Offer

Sarla Buch
26 Mar, 2018
New York City

Bouygues agreed to buy engineering services business of Alpiq for 850 million Swiss francs. Gebr Knauf offered $6 billion to the U.S.-based rival USG Corp. Smurfit Kappa rejected revised higher $11 billion takeover proposal from the U.S.-based International Paper Inc.

[R]4:00 PM Frankfurt – Bouygues agreed to buy engineering services business of Alpiq for 850 million Swiss francs. Gebr Knauf offered $6 billion to the U.S.-based rival USG Corp. Smurfit Kappa rejected revised higher $11 billion takeover proposal from the U.S.-based International Paper Inc.[/R]

In London trading, FTSE 100 index fell 29.97 or 0.4% to 6,892.97 and in Frankfurt the DAX index decreased 61.91 or 0.5% to 11,826.15.

In Paris, CAC 40 index slipped 21.32 or 0.4% to 5,073.89.

Bouygues S.A gained 0.3% to €39.86 after France-based construction services provider today agreed to buy Alpiq Engineering Services of Switzerland-based utility provider Alpiq along with Colas Rail, the rail subsidiary of Colas SA for 850 million Swiss francs or $897 million.

Alpiq stock surged 7.1% to 78.30 Swiss francs.

The transaction is expected to close in the second-half of this year.

Gebr Knauf KG, the family-owned Germany-based building materials maker made proposals to acquire its major stock holder and the U.S.-based rival USG Corp in a for $42 per share that valued of about $6 billion.

Gebr Knauf already controls 10.5% in the USG Corporation and Berkshire Hathaway Inc had a stake of about 31%.

However, USG Corp today rejected the unsolicited and non-binding proposal.

Roche AG jumped 1.7% to 221.80 Swiss francs after Switzerland-based healthcare products maker announced positive results for its immunotherapy Tecentriq and Avastin plus carboplatin and paclitaxel helped people with advanced lung cancer.

The Smurfit Kappa Group Plc declined 3.8% to 2,942 pence after the Ireland-based corrugated packaging maker today unanimously rejected revised higher offer of €25.25 in cash or about $11 billion from the U.S. suitor International Paper.

Earlier, International Paper offered €22 and 0.3 new shares of each share that valued Smurfit Kappa at about €9.5 billion.

“The board of Smurfit Kappa had unanimously rejected International Paper''s unsolicited and highly opportunistic proposal on March 6,” said chairman of Smurfit Kappa Liam O''Mahony.