Engelhard's Board of Directors has rejected an increased cash offer of US$38 per share proposed by BASF as part of a negotiated merger transaction. As per BASF's offer, cash would be provided to Engelhard's stockholders for 100% of their shares within three weeks of reaching a negotiated merger agreement. The Board has instead chosen to pursue a partial share buyback plan, which in contrast, carries significantly higher execution, timing and realization risks. This is despite the fact that no party participating in Engelhard's process valued Engelhard more than US$38 per share or offered an attractive proposal for any part of the business.
BASF is considering all its options after the rejection. BASF continues to believe that its fully financed, all-cash offer provides higher value and greater certainty to Engelhard's stockholders more than what is achievable through the Engelhard partial share buyback plan.
27-Apr-06 
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