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| Rinker says Cemex could pay a lot more  Directors of Australian building materials firm Rinker Group urged shareholders to reject the takeover offer of US$13.00 (A$16.84) per ordinary share from the Mexican cement maker Cemex S.A.B. de C.V. The board says Cemex's offer is opportunistic and far too low. It does not recognise the value of the group's market positions, nor the value of its unique combination of assets, which cannot be replicated. Independent Expert's report by Grant Samuel & Associates Pty Ltd concludes the Cemex offer is neither fair nor reasonable and values Rinker shares at between A$20.581 and A$23.041 per share, including a premium for control.Accepting the Cemex offer of US$13.00 a share would be effectively giving Cemex a free option on recovery of the residential housing sector in Rinker's key United States markets. Accordingly, the Cemex offer is not reasonable. Rinker directors unanimously recommend to 116,000 shareholders to ignore Cemex's offer and do nothing. Major Rinker shareholders who hold more than 100 million Rinker shares have already stated that Cemex's offer undervalues Rinker. Rinker is one of the world's top 10 construction materials groups, with operations in aggregates, cement, concrete, asphalt and concrete pipe and products. Annual revenue is over US$5.1 billion. Rinker has over 13,000 employees in 774 sites across the US, Australia and China. Around 80% of group revenue comes from the US. write your comments about the article :: © 2006 Construction News :: home page |