Saint-Gobain launches hostile cash bid for BPB

Saint-Gobain has made a solid move at long last, kicking off the first major hostile bid seen on the London Stock Exchange for several years. It wants to take over BPB and has made a cash offer worth 720p a share.

BPB is a world leader in the supply of plasterboard and gypsum plasters, and a major supplier of insulation, ceiling tiles and related products for interiors. Its markets are growing and it sells into 50 countries.

BPB operates more than 130 manufacturing sites and employs over 12,500 people worldwide. BPB's annual plasterboard sales volume represents nearly 20% of a world market of some 6.5bn square metres.

An earlier informal approach, indicating a figure of 675p a share, had been dismissed as "unwelcome" by the BPB board.

The City expects the bidder to come back with a higher offer, at around 750p-800p. Saint-Gobain's formal move has set the clock ticking on a 60-day timetable.

BPB has 14 days to prepare its defence.