Austrian brick producer Wienerberger has stepped up its bid to take control of Black Country rival Baggeridge Brick.
Wienerberger Finance Service, a subsidiary of Wienerberger, confirmed yesterday that it was increasing its recommended cash offer for the Sedgley firm to 230p per share, trumping a possible rival bid from Michelmersh Brick Holdings.
Michelmersh stated on Monday that it was still interested in acquiring Baggeridge and said it was continuing to seek financial support to fund a possible offer.
Wienerberger said it had entered into agreements to acquire approximately 32 per cent of Baggeridge's shares at the higher price, which would value the company at £94.3 million.
The shares represent the irrevocable backing of Baggeridge's board, as well as trustees of the Ward family trust.
Michelmersh has been steadily increasing its interest in Baggeridge and currently has a 23.12 per cent stake in the company.
It has said said any bid would comprise a cash offer at not less than 225p per Baggeridge share with a partial share alternative.
Wienerberger had been offering 220p a share but its revised offer is a premium of 37 per cent to Baggeridge's closing price of 167.5p before Wienerberger's initial approach in August last year.
It said it would send the terms of the revised offer to Baggeridge shareholders shortly, and the offer would remain open for a period of not less than two weeks from the date of the posting.
Wienerberger chief executive Wolfgang Reithofer, said: "The purchase of the 32 per cent stake in Baggeridge is a significant step taken by Wienerberger towards gaining control.
"The price marks a very attractive premium and at 230p per Baggeridge share represents better value than any rumoured Michelmersh offer. We now look forward to an exciting future and to help finally bring to the end some of uncertainty that has been surrounding Baggeridge, its business, its management and its employees."
Michelmersh said it was considering its position and added that talks about financing a possible rival offer were ongoing. Michelmersh, which has a market capitalisation of £48 million, has built up its stake in twice-as-large Baggeridge by buying 7.2 million shares at 211.5p each and a further 2.34 million shares at 225p each.
