Industrie Zignago: agreement on takeover bid

Agreement on a takeover bid for Italy“s Industrie Zignago Santa Margherita S.p.A has been reached between Gaetano, Stefano, Nicolo and Luca Marzotto of the Marzotto textile group and Luca Umberto of …

Agreement on a takeover bid for Italy“s Industrie Zignago Santa Margherita S.p.A has been reached between Gaetano, Stefano, Nicolo and Luca Marzotto of the Marzotto textile group and Luca Umberto of the Dona dalle Rose family. It was reported on 7 June 2005 that the bidders are offering EUR 18.6 (USD 22.9) per share for Zignago, which is active in the glass container, wine and linen sectors. The operation will be performed through a special purpose vehicle. The bidders plan to consolidate their combined 48.3% stake in Zignago and the special purpose company is to launch an obligatory takeover bid for the remaining 51.7% stake worth some EUR 240.4 million (USD 295.9 million). The operation is to be closed by September 2005. If the stake exceeds 90%, the vehicle will present a residual takeover bid. The company generated EUR 284.4 million (USD 350 million) in consolidated revenue in 2004 compared to EUR 278.8 million (USD 343.1 million) in 2003. Operating profit stood at EUR 40.5 million (USD 49.8 million) in 2004, up from EUR 37.3 million (USD 45.9 million) a year ago.