Engelhard Attempts To Derail BASF Takeover Attempt

Few Engelhard stockholders have agreed to sell their shares to BASF for $37, so Engelhard is hoping that shareholders who want to sell now will be more interested in Engelhard???s own offer of $45 per share in cash for 20% of the firm???s outstanding shares.

Engelhard CEO Barry W. Perry says the offer "gives shareholders partial liquidity at an attractive price of $45 per share while preserving their ability to participate in the company's exciting future growth potential." BASF first offered to buy Engelhard in January for $37 per share, or $4.9 billion. Engelhard rejected that offer as inadequate and has now rejected BASF???s April 19 offer of $38 per share, which was offered to Engelhard???s board.

At press time, BASF said it "is considering all its options" and noted that its own official offer of $37 per share expires this Friday, April 28.

In the continuing cat-and-mouse game played by the two firms, Engelhard also said it would increase the size of its board from six to nine members to fend off BASF's attempt to solicit shareholder consents to fill board seats and force the company to accept BASF???s offer.