P.M. BRIEFING : Georgia Gulf to Fight Takeover
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WASHINGTON — Georgia Gulf Corp., moving ahead with a plan to avoid a hostile takeover bid by Texas investor Harold Simmons, filed today for permission to offer $200 million in notes to investors to back its recapitalization proposal.
The Atlanta-based chemicals producer previously said its board of directors would make a decision on the $1.1-billion, or $45-a-share, unsolicited offer by Feb. 16.
Until then, it advised shareholders not to tender their shares in the hope of gaining support for its previously announced recapitalization plan.
Simmons’ NL Industries Inc., a Houston-based specialty chemicals company, has a 9.9% stake in Georgia Gulf and recently announced the $45-a-share offer.
Georgia Gulf is hoping that a recapitalization will discourage Simmons’ overtures. The company has valued the recapitalization plan at $55 a share, but Wall Street analysts value the plan at $45 to $50 a share.
Earlier this week, Georgia Gulf set April 19 as the date for a shareholders meeting at which a vote will be taken on its plan.
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