French Company to Buy Norton Co. for $1.8 Billion
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BOSTON — Norton Co., which has been fending off a hostile takeover bid from British conglomerate BTR PLC, said today it agreed to be acquired by the French firm Compagnie Saint-Gobain in a deal that values the abrasives manufacturer at around $1.8 billion.
The $90-a-share cash offer exceeds BTR’s bid of $1.6 billion, or $75 a share, which was rejected last month by Norton’s board of directors.
Wall Street applauded today’s announcement. In active trading on the New York Stock Exchange, Norton jumped $13.50 to $88.75 a share by midday.
The announced merger with Compagnie Saint-Gobain comes a day after a federal judge ordered Worcester-based Norton to reveal the amount of a “white knight” offer it said it had received last week.
The court order came during a hearing on suits filed on behalf of some Norton shareholders seeking to require Norton to fully and fairly consider BTR’s offer and “take into consideration the interest of the shareholders.”
Norton told the Securities and Exchange Commission last Friday that a third party was interested in buying Norton for more money.
BTR had planned to wage a proxy fight at Norton’s annual shareholders’ meeting set for Thursday.
One of Norton’s biggest weapons was a new state law that would prevent BTR from taking immediate control over the Norton board.
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