ICI American bid runs into trouble
Tuesday 09 May 1995
Deputy City Editor
Imperial Chemical Industries' proposed £179m takeover of Grow, the New York-based architectural paint and coatings business, ran into trouble yesterday after one of America's best-known paint manufacturers stepped into the fray and filed lawsuits against both Grow and ICI.
Sherwin-Williams trumped ICI's $18.10 tender offer for Grow's shares with a higher bid worth $19.50 a share or $320m. It said its tender was conditional on Grow's directors removing a "poison pill" rights plan and an $8m lock-up fee that had been granted to ICI.
Sherwin-Williams' chief executive, John Breen, said: "Because Grow Group's management and board of directors decided to sell their company and to exclude Sherwin-Williams from the bidding process, we have commenced this tender offer so our superior proposal can be communicated directly to all Grow Group's shareholders.
"At the price we are offering, we think the combination of the two companies will be beneficial to the shareholders of both companies."
Sherwin-Williams accompanied its bid with lawsuits, filed in Ohio and New York, against Grow, its directors and ICI. The writs claimed that Grow's directors had breached their fiduciary duties in approving a merger with ICI and said their filings with the SEC were defective.
ICI launched its bid on 1 May after securing a recommendation from Grow's directors, who also agreed to the sale to ICI by Corimon, a Venezualan corporation, of its 25 per cent stake.
Sherwin-Williams said it had repeatedly advised Grow of its strong interest in acquiring the company but had been rebuffed. It said it was willing to enter into a merger agreement with Grow on substantially the same terms and conditions as ICI.
ICI's bid for Grow was the latest move in a consolidation of its position in the $18bn North American paint market. It first became an important player there in 1986 with the acquisition of Glidden Paints for $500m. Last year it expanded the operation, buying California-based Decratrend Paints, bringing the division's sales to around $1bn a year.
An ICI spokesman refused to comment yesterday on Sherwin-Williams' move.
- 1 King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Presidential optical illusion offers clues to how brain processes faces
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ukip Jelly Babies cause uproar on Amazon
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...