The board of directors for US chemicals firm Georgia Gulf
rejected Westlake Chemicals unsolicited proposal to acquire the
company for a $30/share bid, valued by analysts at just over $1
The Georgia Gulf board and management team are
committed to enhancing value for all stockholders and as such
we have carefully reviewed Westlakes unsolicited
proposal, said Paul Carrico, CEO.
After careful consideration, Georgia Gulfs board
determined that Westlakes proposal is financially
inadequate and not in the best interest of Georgia Gulf
stockholders. We believe the Westlake proposal is an
opportunistic attempt to acquire the companys uniquely
positioned assets as we recover from an unprecedented downturn
in the industries we serve and a volatile public equity market,
and thereby deprive our stockholders of the companys
Georgia Gulf communicated its response in a letter to Albert
Chao, CEO of Westlake. The text of that letter can be read by
Georgia Gulf also modified its shareholder rights plan in
hopes of thwarting the bid. Details of those changes can be read here.
Westlake officials characterized the modifications as a
Last nights response from Georgia Gulf
demonstrates why Westlake had no choice other than to take our
compelling proposal directly to Georgia Gulfs
shareholders and we urge those shareholders to make it clear to
Georgia Gulfs Board that they should immediately begin
negotiations with us about getting a transaction done,
the company said.
We have made a fair and compelling proposal that
offers superior value to Georgia Gulf shareholders as compared
to its existing strategy and standalone share price
prospects, Westlake continued. We have also
repeatedly said we would be willing to consider any
opportunities that exist to justify increasing our offer.
Unfortunately Georgia Gulfs Board has refused to
allow us to explore these opportunities and has instead
insisted on a standstill arrangement that would unreasonably
restrain their shareholders ability to timely consider
Westlake made its first bid to acquire Georgia Gulf on
September 20, 2011.