Baggeridge shareholders stall on Wienerberger offer

Baggeridge Brick has written a letter to its shareholders reminding them that the cash offer from Wienerberger closes on Wednesday.

The takeover was cleared by the Competition Commission on 10th  May but since then Wienerberger has not acquired the 50% of shares it requires.

It is possible that shareholders are holding out to see details of a possible rival bid from Michelmersh, who has secured £16.5m worth of funding from WE Black, a private housebuilder, for a possible bid.

Wienerberger was forced to up its offer to 220p a share when Michelmersh revealed that it has amassed a 23% stake, but this is now well short of the 230.5p the shares are currently trading for. Industry watchers had speculated that Wienerberger would sweeten its offer, as the deal is not as attractive as it was last summer when high energy prices were denting profits, but this has not materialised.

In the letter, Baggeridge Brick warned its shareholders: “The offer [by Wienerberger] is due to close at 1pm on Wednesday, 6th June. Whilst Wienerberger is free to extend the offer before that date, there can be no assurance that it will do so if by then it has not become or been declared unconditional as to acceptances.”

Referring to a possible rival offer by Michelmersh, the letter said: “More recently, it [Michelmersch] has announced that any offer would comprise a cash offer at no less that 225p per Baggeridge share with a partial share alternative. Although we understand that Michelmersch has been seeking support to finance an offer for some time, no firm intention to make an offer has been received.

“At this stage, therefore, there can be no assurance that Michelmersh will make an offer by 6 June or at all. As a result, the Wienerberger offer is the only offer available to Baggeridge shareholders.”