Fletcher Building reported to lift offer for Crane

Friday 28th January 2011

Fletcher Building is reported to have raised its offer for Australian-based plumbing supplies and plastic pipelines maker Crane Group.

The Australian newspaper today said the two were expected to formally announce they had struck a deal as early as today after both went into a trading halt yesterday.

Fletcher Building, which launched its hostile bid for Crane just before Christmas, was believed to have raised the cash component of its offer, with the revised deal likely to approach A$10 (NZ$12.84) a share.

The initial A$740 million bid by Fletcher Building was priced at A$9.35 a share and comprised A$3.47 cash and one Fletcher share for every Crane share.

The Sydney Morning Herald said Crane shareholders should brace for a recommendation from their board that it accepts a higher bid from Fletcher Building.

Yesterday's voluntary suspension of trading in both companies' shares would not have happened were the parties not down to negotiating about details.

Fletcher already has 15% of Crane, most of which it bought at A$9.35 a share from institutional investors.

NZPA

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