Wendel: no to sale of Saint-Gobain shares even at EUR 70

French Investment holding company Wendel Investissement SA would not think of selling its shares in French construction materials group Compagnie de Saint-Gobain even if the price were to reach EUR 70…

French Investment holding company Wendel Investissement SA would not think of selling its shares in French construction materials group Compagnie de Saint-Gobain even if the price were to reach EUR 70 a share from the current EUR 47.62, Wendel“s chief executive said 9 June 2008. Wendel started building its 21.5% stake in Saint-Gobain around the middle of 2007 at around EUR 72 a share. It paid a total EUR 5.9 billion, EUR 5.5 billion of which was debt and equity, and EUR 400 million due to margin calls, for the Saint-Gobain stake. Since September 2007, when Wendel disclosed its stake in the Paris-based building products and glass supplier, the price of Saint-Gobain has fallen by around a third as the result of continuing general market turmoil. “We have an objective to obtain a price significantly superior to the (EUR 70 a share) over the next five years”, Wendel CEO Jean-Bernard Lafonta told the annual meeting.