Ardagh: second approach for glass Unit from Quinn rejected

The Board of Ardagh Plc said 10 January 2003 that it had received a second unsolicited preliminary approach from Quinn Group Limited to purchase preferred ordinary shares in Ardagh Glass Limited.
The…

The Board of Ardagh Plc said 10 January 2003 that it had received a second unsolicited preliminary approach from Quinn Group Limited to purchase preferred ordinary shares in Ardagh Glass Limited. The Quinn Group conditionally proposed to purchase, for EUR 1.70 in cash, the preferred ordinary shares in Ardagh Glass to be issued to ordinary shareholders in Ardagh on completion of the demerger. Ardagh said the approach also involved an increase in the redemption price offered to the preferred ordinary shareholders under the original Quinn Group proposal from EUR 1.20 plus the profit share to EUR 1.40 per share with a minimum increase of 10% per annum for the period from completion of the revised proposal to 31 December 2005. Ardagh said it noted that the revised proposal represented a minimal increase of 13% on the earlier proposal, which was rejected as totally inadequate and accordingly, the Board had rejected it as not reflecting the value of the glass business and its prospects. The board also reiterated that the glass business was not for sale. If it were for sale, it would only be sold when the board was confident that it had engaged in an appropriate process obtaining the best available price for shareholders, Ardagh said. According to the Ardagh Directors, this latest approach from the Quinn Group does not fully value the glass business and the agreed strategy to demerge it from Ardagh Glass could generate even more value for shareholders in the medium term.