Wienerberger ups Baggeridge offer to fend off Michelmersh

Wienerberger last week upped its offer for Baggeridge Brick from 220p to 230p per share to fend off interest from rival bidder Michelmersh.

The Austrian brick and tile giant has built a 32% stake in the brickmaker, with shares purchased from the Ward family trust and management. It is attempting to acquire 50% of Baggeridge stock.

Wienerberger has raised its offer to 230p after Michelmersh, which has built a 23% stake, said it was considering a rival offer of no less that 225p per share.

However, Wienerberger's offer has the backing of the board. The Ward family trust and management said that it had offered its 32% stake to demonstrate its commitment to Wienerberger's offer.

"The board of Baggeridge continues to believe strongly in the merits of combining the UK operations of Baggeridge and Wienerberger and of Baggeridge becoming part of the world's number one brick producer," said Alex Ward, chairman of Baggeridge Brick.

Having paid for its 23% stake using a loan from housebuilder WE Black, Michelmersh would have to source additional funding to pay for any further share purchases.

The company said it would continue to review its position regarding a possible bid following Wienerberger's higher offer.