Covestro top shareholder urges chemicals firm to grant ADNOC due diligence
Reuters
Published Dec 19, 2023 16:29
By Emma-Victoria Farr
FRANKFURT (Reuters) - Covestro's management should allow Abu Dhabi National Oil Co (ADNOC) access to conduct due diligence in its ongoing pursuit of the German chemicals firm, top 15 investor Union Investment said on Tuesday.
The state oil giant is considering submitting an improved bid of 60 euros per share in the coming days, as well as pledging job guarantees and around $8 billion investment in the company after the deal, Bloomberg News reported on Monday.
This could value the German plastics and chemicals maker at around 11.3 billion euros ($12.41 billion).
"In our view, such an offer fulfils the pre-requisite for the board to enter into in-depth takeover negotiations," said Arne Rautenberg, fund manager at Union Investment, in an emailed statement to Reuters.
The German fund manager owns around 3.2 million shares or 1.7% of Covestro, making it a top 15 investor in the business.
The crucial question should not be whether Covestro remains independent, but more importantly what ADNOC intends to do and how heavily it will invest in the business, Rautenberg said.
A takeover could make Covestro more competitive, Rautenberg added. Covestro declined to comment.
Reuters had reported in August that ADNOC had verbally signalled to Covestro it could raise its informal offer to 60 euros per share if the German company agrees to enter formal talks.
($1 = 0.9109 euros)
Get The App
Written By: Reuters
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.