Cersanit gives too low a price for rival Opoczno

APA - Austria Presse Agentur
12-10-2006, 13:14

Warsaw (Puls Biznesu) – Cersanit wants to acquire Opoczno paying less than the company is worth, the management of the company said. Analysts have split opinions.

Warsaw (Puls Biznesu) – Cersanit wants to acquire Opoczno paying less than the company is worth, the management of the company said. Analysts have split opinions.

The tender offer announced by Cersanit to buy 16.45m shares, or 100 percent of the capital of Opoczno, starts on October 13th and last till December 21st. The management of Poland’s leader in tile production, believes that Cerstanit’s offer is not very attractive. The company controlled by Michal Solowow offers PLN 33.5 (EUR 8.5) per share, which is the average price in the last three months before the tender offer was announced. Opoczno management checked 17 recommendations.

“The management viewed recommendations issued in the last six and three months before the tender offer. The average share price prepared on the basis of the six-month recommendations amounts to PLN 36.45, the one based on three-month recommendations to PLN 37.86”, Opoczno management said in a statement.

In addition, it asked Ernst & Young Corporate Finance to prepare an opinion. E&Y said that PLN 33.5 a share is below the value of the company.

However, Cersanit should have no problems to acquire 45 percent of the shares because it has already signed agreement with the main shareholder, Credit Suisse First Boston Ceramic Partners (controlled by Enterprise Investors) that it will sell its stake if the price amounts to at least PLN 33. What about the other shareholders?

“The price in the tender offer is low. I estimate the shares at PLN 51 each but providing that Michal Solowow treats Opoczno shareholders the same as Cersanit shareholders”, Pawel Puchalski, DM BZ WBK analyst commented.

CDM Pekao on the other hand recommends to sell the shares because it fears that Opoczno condition is not good. Investors probably hope that Michal Solowow will raise his offer. The stock is traded at PLN 43 at the moment.

(PLN 1 = EUR 0.255)

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Podpis: APA - Austria Presse Agentur

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