Engineering News

Westlake Chemical drops bid to buy Georgia Gulf
Fri, May 4, 2012 5:31 PM EDT

After talks fail to produce deal, Westlake Chemical drops $1.2 billion bid for Georgia Gulf

HOUSTON (AP) -- Westlake Chemical Corp. said Friday that it withdrew a $1.2 billion offer to buy Georgia Gulf Corp. and will sell its stock in the company.

Shares of Georgia Gulf tumbled nearly 10 percent in after-hours trading, while Westlake stock gained.

Houston-based Westlake said it made the decision after discussing the bid with Georgia Gulf, another chemical maker, under a confidentiality agreement.

"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," said Westlake CEO Albert Chao.

Georgia Gulf did not immediately return phone calls requesting comment.

Westlake launched a hostile bid for Georgia Gulf in September and increased its price in February from $30 per share to $35 per share, but Georgia Gulf's board spurned the offer, which was nearly identical to the price of Georgia stock at the time.

Westlake tried to strike a more conciliatory tone, deciding against nominating directors to Georgia Gulf's board to pave the way for what it hoped would be friendly buyout discussions.

Atlanta-based Georgia Gulf makes chemicals and vinyl-based products for construction and home-improvement jobs. Westlake makes petrochemicals and other products.

Shares of Georgia Gulf fell $1.05, or 3 percent, to $34.26 in regular trading, and another $3.31, or 9.7 percent, to $30.95 in after-hours trading.

Westlake shares rose $2.99, or 5 percent, to close at $56.70, then gained an extra 67 cents to $57.37 in extended trading.

Source: Associated Press

Engineering News Archive

 
// CAREER RESOURCES

Applicant Procedures
Job Seekers
Resume Help
Professional Organizations
Engineering Career Information
Engineering Colleges

// WHAT WE DO
Recruiters for
Professionals in the Chemical
& Pharmaceutical Industries
We recruit exclusively for Engineers and Operations/Maintenance Management Personnel in the following areas:
Specialty chemicals
Bulk chemicals
Commodity Chemicals
Petrochemicals
Fine chemicals
Agrochemicals
Industrial gases
Surfactants
Fertilizers
Solvents
Coatings
Polymers
Pharmaceuticals
Refinery
Career Center | FAQs | Privacy
SESI Corporate Headquarters (954)755-3121 ext 109
© Search Enterprises, Inc. All rights reserved.
Industry News Career Center FAQs Submit a Job About Search Enterprises Submit a Resume Candidates Job Opportunities Search Enterprises Home