CalMat Rejects Brierley’s $986-Million Offer

CalMat, the Los Angeles cement giant, Wednesday rejected as inadequate a $986.2-million, or $40-a-share, offer from its largest shareholder, New Zealand investor Ronald A. Brierley.

In a statement, A. Frederick Gerstell, CalMat president and chief executive, seemed to discourage a higher offer. “A sale of CalMat is not in the best interests of our shareholders at this time,” he said.

But CalMat’s shares closed higher Wednesday, indicating that investors expected a bigger bid to emerge. CalMat’s shares closed at $44, up 25 cents in composite trading on the New York Stock Exchange.

In New Zealand, a spokesman for Brierley said the investor had no comment on CalMat’s rejection. His firm, Industrial Equity (Pacific), owns 19.1% of CalMat’s shares. Brierley also controls two seats on CalMat’s board.

“The Brierley interests, which have been represented on our board for almost a year, are aware of (CalMat’s) values and are attempting to appropriate these values for themselves,” Gerstell’s statement said.

CalMat said Brierley’s offer was unanimously rejected by directors unaffiliated with the New Zealander.

The board vote indicates that CalMat’s second-largest shareholder, the Dan Murphy Foundation, is opposed to Brierley’s offer. The foundation is named for the founder of California Portland Cement, CalMat’s corporate predecessor. It owns 13.8% of CalMat’s shares and controls two seats on CalMat’s board.