Thursday, December 6, 2012

Georgia Gulf Jumps 35% On Hostile Takeover Bid

Despite the down day on Wall Street, shares of �building products maker�Georgia Gulf (GGC) were soaring 35% to $33 on an unsolicited takeover offerfrom Westlake Chemical (WLK).

Westlake, which already owns nearly a 5% stake in the company, said it had sent its proposal to Georgia Gulf in September, and would prefer to enter talks directly with�management, but felt compelled to make the news public following the rejection of its offer.

The original offer was for $1.03 billion, or $30 a share — less than today’s highs but a 23% premium to Georgia Gulf’s close on Thursday.

Despite today’s pop, Georgia Gulf, which fell as low as $12 in October, �is still trading well below its 52-week high of $40.59, set back in April 2011.

In recent trading, Westlake, which manufactures a variety of polymers, PVC products and vinyls, was up 1%.

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