Saint-Gobain investors will be offered EUR1.5 billion of stock at EUR14 apiece, the supplier of glass and concrete products said . That’s 50 per cent less than Thursday’s closing price of EUR27.99.
Lafarge, yet to announce terms, said its two largest shareholders, Groupe Bruxelles Lambert and NNS Holding, back the plan.
The rights offerings highlight a deepening building slump at a time when the companies have spent more than US$25bn combined on acquisitions to expand globally.
Saint-Gobain, based near Paris, said 2009 will be “extremely challenging” following a sharp deterioration in demand in the fourth quarter. The company cut 8,000 jobs last year, twice as many as planned.