Georgia Gulf on Wednesday rejected the revised takeover bid from US-based Westlake Chemical, which bumped its offer to $35/share from an earlier $30/share.
The first bid was turned down by Georgia Gulf management two weeks ago.
We take our fiduciary duties very seriously and will consider any bona fide acquisition proposal or other transaction that reflects the full and fair value of Georgia Gulfs current business and future prospects, said Georgia Gulf CEO Paul Carrico.
However, it continues to be the unanimous view of the board that $35/share, which represents a discount to last nights closing price, is far from compelling and does not represent an appropriate price for us to discuss the sale of Georgia Gulf on a one-off basis, he continued.
We believe that the company is at an inflection point in its key businesses, with a significant ability to leverage improving global PVC demand and access to comparatively low-cost US shale gas.
We also believe that these factors, combined with improving confidence about the US construction market, are starting to become recognized with increasing multiples and equity prices in our industry, and that Georgia Gulf is positioned to significantly outperform going forward.
The full text of Georgia Gulfs letter to Westlake Chemical can be read by clicking here.