KEY POINTS:
SYDNEY - Mexican cement maker Cemex confirmed yesterday it had extended its sweetened US$14 billion ($19.1 billion) takeover offer for Australia's Rinker Group.
Rinker has recommended the bid, and analysts expect it to succeed, even though it is at the low end of expectations. The extension until May 18 has given shareholders an extra month to consider the revised US$15.85 a share bid.
Rinker's largest shareholder, Perpetual Investments, which holds a 10.5 per cent stake and opposed the previous offer, has not said if it will support the revised offer. A spokesman said the fund manager would not comment on the proposal. It is expected to wait until Rinker's annual results on May 10 before revealing its decision.
The takeover will consolidate Cemex's position as the world's top ready-mix concrete maker.
It will gain access to Rinker's business in Australia, a new market for Cemex, but will also take on the Australian firm's struggling US business.
Continued appreciation in the Australian dollar has cut the local value of Cemex's revised offer, prompting speculation that shareholders may ask for a fixed Australian-dollar price.
- REUTERS
