British Firm Offers $1.1 Billion for No. 2 U.S. Wallboard Maker

CHARLOTTE, N.C. —  BPB Industries of Britain on Tuesday offered $1.1 billion for National Gypsum Co., the No. 2 U.S. wallboard producer, and investors were betting that bidding would rise.

BPB, a major wallboard producer and an industrial force in Europe, said it offered $48.50 a share for all of National Gypsum, which emerged from bankruptcy less than two years ago.

Charlotte-based National Gypsum said this is the first “outside” offer received since it rejected two unsolicited offers from companies led by C.D. Spangler, a former member of its board. Companies controlled by Spangler own 19% of National Gypsum.

The company was forced to seek protection from creditors under bankruptcy laws in 1990, after it was stung by asbestos liability costs linked to products it sold in the 1970s.

Since emerging from bankruptcy in July, 1993, National Gypsum has cut costs and boosted its profit margin, so it is an attractive property in the currently healthy building market, industry analysts said.

National Gypsum shares rose $4.75 to $49.25 in late trading on Nasdaq--higher than the price offered by BPB and a strong signal that investors expect another bidder to emerge.

BPB, based in Slough near London, is the biggest European wallboard producer, with over half the market. It said it is seeking a friendly merger to gain a toehold in the United States.

A new National Gypsum could be worth as much as $55 a share, or up to $1.3 billion, analysts said.