Rinker still rejects takeover bid from Cemex

Rinker still rejects takeover bid from Cemex
30 January 2007

Rinker Group Ltd  is still urging shareholders to reject a US$12bn ($A15.6bn) hostile takeover bid from  Cemex, and says it is reviewing alternatives. 
"Regarding the Cemex bid, we are actively reviewing various value-adding alternatives," Rinker chief executive, David Clarke, told a conference call today after the release of the company’s third quarter results. 
"We recommend that shareholders continue to reject the Cemex offer, which is far too low." 
Cemex, the world’s third biggest cement maker, launched its $US13.00 ($A16.86) a share offer for Rinker in October. 
Rinker’s net profit after tax (PAT) rose 13 per cent to US$182m ($A235.7m) in the three months to December 31, 2006. 
The building products maker said today it should maintain profitability, in line with previous guidance, despite current difficulty in predicting the short term impact of a slowdown in the US housing market. 
Rinker says it expects earnings per share (EPS) for fiscal 2007 to be around the bottom of the 84 to 90 US cents range. 
That does not include tax consolidation costs of US$16m ($A20.8m) and takeover defence costs of about US$5m (A$6.5m). 
Published under Cement News