🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

U.S. can maker Ball Corp in talks to buy UK rival Rexam

Published 05/02/2015, 12:22
© Reuters.  U.S. can maker Ball Corp in talks to buy UK rival Rexam
KO
-
HEIN
-
REX
-
BALL
-
ABI
-
CCK
-

By Esha Vaish

(Reuters) - Beverage can maker Rexam Plc (L:REX) said it was in talks to be potentially bought by U.S. rival Ball Corp (N:BLL) in an offer that values the company at about 4.29 billion pounds ($6.54 billion).

The offer from Ball Corp, which like Rexam controls about 21 percent of the market for beverage cans, values Rexam at 610 pence per share, a 36 percent premium to the stock close on Wednesday.

Rexam shares rose as much as 29 percent to 575.5 pence on Thursday. They had risen 6 percent earlier after the Independent and the Times reported there were rumours that Rexam was a potential takeover target for U.S. private equity firms.

Rexam, which makes aluminium cans for companies such as Coca-Cola Co (N:KO), Anheuser-Busch InBev (BR:ABI) and Heineken NV (AS:HEIN), said Ball Corp had till March 5 to make a firm offer or walk away.

Ball Corp could not be immediately reached for comment. The company on Thursday reported fourth-quarter results, but made no mention of the potential acquisition in the statement.

Rexam said Ball Corp's proposal comprised two third in cash and the rest in stock. Ball Corp's shares rose marginally to $66.20 in thin premarket trading.

While Rexam and Ball Corp each controlled about 21 percent of the global market in 2014, Crown Holdings Inc (N:CCK) held a 19 percent share, according to research firm Vertical Research Partners.

Jefferies analyst Sandy Morris had expected a private equity bidder to emerge, as industry consolidation would be difficult due to antitrust issues.

Rexam statement did not comment on any potential antitrust issues.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.