Holcim Sees Special Div. as a Negative for Merged Company: UBS
2015-03-13 07:00:19.570 GMT
By Gaurav Panchal
(Bloomberg) -- Holcim believes special dividend for Holcim
shareholders would have negative impact on balance sheet of
merged company, UBS says following meeting with Holcim CFO
Thomas Aebischer at the UBS Investors’ Club yday night.
* UBS says following meeting that only adjustment factor is a
non-cash change in ratio
* Holcim pointed to 1:1 exchange ratio in merger agreement,
which has no adjustment mechanism: UBS
* Holcim said co. is “listening to shareholders” because
Holcim needs a 2/3 majority of its shareholders
attending EGM in order to approve the capital increase
needed to acquire Lafarge shares: UBS
* Holcim said co. is “listening to shareholders” because
Holcim needs a 2/3 majority of its shareholders
attending EGM in order to approve the capital increase
needed to acquire Lafarge shares: UBS</li></ul>
* Coming weeks should bring more clarity on whether the
exchange ratio will be adjusted, which requires re-
negotiation of the merger contract: UBS
* Probability of failure is low: UBS
* Current share prices imply a ~9% re-pricing given the
current trading of 1.09x HOLN/LG: UBS
* March 12: Holcim, Lafarge Said to Discuss Changing Terms for
Cement Merger Link
Link to Company News:{HOLN VX <Equity> CN <GO>}
Link to Company News:{LG FP <Equity> CN <GO>}
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the reporter on this story:
Gaurav Panchal in London at +44-20-3525-0511 or
gpanchal2@bloomberg.net
To contact the editor responsible for this story:
Brian Lysaght at +44-20-3525-7908 or
blysaght@bloomberg.net
2015-03-13 07:00:19.570 GMT
By Gaurav Panchal
(Bloomberg) -- Holcim believes special dividend for Holcim
shareholders would have negative impact on balance sheet of
merged company, UBS says following meeting with Holcim CFO
Thomas Aebischer at the UBS Investors’ Club yday night.
* UBS says following meeting that only adjustment factor is a
non-cash change in ratio
* Holcim pointed to 1:1 exchange ratio in merger agreement,
which has no adjustment mechanism: UBS
* Holcim said co. is “listening to shareholders” because
Holcim needs a 2/3 majority of its shareholders
attending EGM in order to approve the capital increase
needed to acquire Lafarge shares: UBS
* Holcim said co. is “listening to shareholders” because
Holcim needs a 2/3 majority of its shareholders
attending EGM in order to approve the capital increase
needed to acquire Lafarge shares: UBS</li></ul>
* Coming weeks should bring more clarity on whether the
exchange ratio will be adjusted, which requires re-
negotiation of the merger contract: UBS
* Probability of failure is low: UBS
* Current share prices imply a ~9% re-pricing given the
current trading of 1.09x HOLN/LG: UBS
* March 12: Holcim, Lafarge Said to Discuss Changing Terms for
Cement Merger Link
Link to Company News:{HOLN VX <Equity> CN <GO>}
Link to Company News:{LG FP <Equity> CN <GO>}
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the reporter on this story:
Gaurav Panchal in London at +44-20-3525-0511 or
gpanchal2@bloomberg.net
To contact the editor responsible for this story:
Brian Lysaght at +44-20-3525-7908 or
blysaght@bloomberg.net