Michelmersh may make bid for Baggeridge

The takeover of Baggeridge Brick by Wienerberger has been cast into doubt following the acquisition of a significant number of shares by a rival brick maker.

The path seemed to have been cleared for Austrian firm Wienerberger after the Competition Commission provisionally cleared its proposed acquisition of Baggeridge, although the final report won’t be published until 28 May.

However, now it seems that Michelmersh Brick may launch a counter bid after raising its stake to 17.4%. Michelmersh now holds 7.2m shares after purchasing 4.3m shares at 211.5p each last week and adding a further 2.89m shares at the same price on Monday.

In a statement Michelmersh said that it was “considering its position, including the possibility of making an offer for Baggeridge”.

It said that no decision had been made regarding the relative merits of an offer and there can be no assurance that any offer will be forthcoming.

As a result of the challenge Wienerberger has altered its plans for buying Baggeridge. The Austrian firm has announced that it will now switch its offer from a scheme of arrangement to a takeover bid. This means that the Austrian brick giant will now only need half of Baggeridge’s shareholders to accept its 216p per share offer, rather than the three quarters required under the original agreement.