Lafarge denies bid plans for RMC

Lafarge has today (Thursday) denied bid plans for building materials group RMC as it announced plans to raise €1.28bn by selling new shares to fund acquisitions and invest in organic growth.

"We do not plan to make any bid for RMC and our rights issue will be used for small-to-medium-sized acquisition targets over the next two years as well as to reduce our debt level," a Lafarge spokesman said.

Lafarge also said it would use the funds to strengthen its financial structure and told analysts in a conference call only 20% of the capital would be used for acquisitions.

The building materials giant reiterated plans to cut net debt by 1 billion euros in 2003, but said this was independent of the rights issue.

The rights issue is priced at 41 euros per new share on the basis of four new shares for every 17 already held.