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Pilkington Sold 2006-02-27

Posted by clype in Money.
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Glass maker ‘Pilkington’ has agreed to a 2 200 million GBP takeover bid by its biggest investor, ‘Nippon Sheet Glass’. That will end 180 years as an independent company.

Directors of ‘Pilkington’, which controls nearly a fifth of the global market for glass, recommended a 165p/share offer from ‘Nippon Sheet Glass’. It had earlier rebuffed two lower proposals from the Japanese company over the past three months.

  • Job cuts at the ‘Pilkington’ head office in St.Helens, Merseyside, are not expected and ‘Nippon’ has agreed that the European operations of the new entity will remain in the UK.

‘Nippon’, whose ‘NGF Europe’ subsidiary is also based in St.Helens, already owns 19.7 per cent of ‘Pilkington’ and said its offer represents a 30 per cent premium on the share price when there was first news of a bid.

‘Over the past nine years “Pilkington” has significantly improved its cost structure to become leaner and more profitable,’ said CEO Mr.Stuart Chambers, who will be staying on.

‘Recently “Pilkington” has moved to the third stage of its strategy, focusing on investments in the growing emerging markets of Russia, China, India and the Middle East.

‘The combination with “Nippon” will expand our geographic reach and enhance “Pilkington’s” position as a global, world-class glass manufacturer.’

‘Pilkington’ employs about 24 000 people and has plants in Birmingham and Doncaster, while its sales and distribution operations span more than 130 countries.

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