Saturday, September 18, 1999
Ashland adds 3% to Superfos offer
New bid is in Danish currency
BY MIKE BOYER
The Cincinnati Enquirer
Ashland Inc. slightly sweetened its bid for Danish industrial company Superfos Inc. Friday, amid reports a new bid for its coveted U.S. highway construction business may be in the offing.
Ashland said Friday it was changing the denomination of its all-cash tender offer for all shares of Copenhagen-based Superfos from dollars to the Danish krone.
Covington-based Ashland, which operates the largest U.S. highway construction company, said it was changing its original $21 a share offer (146 Danish kroner) to 150.18 kroner per share.
The move increases the value of Ashland's offer for all 30.89 million Superfos shares by about 3 percent.
Ashland spokesman Stan Lampe said the move reflected the strength in the dollar against the krone since the offer was made in early August and the fact that most of Superfos shareholders are residents of Denmark. The krone, he said, “is their currency of choice.”
Meanwhile Friday, a Danish newspaper reported that Superfos expected to shortly disclose another bid for its U.S. highway construction business, based in Dothan, Ala.
Peter Hoejland, Superfos CEO, was quoted as saying, “In a short while there will come an actual bid, although I can't put a date on when this will be. We're trying to make it happen quickly as we're in an uncer tain situation.”
Analysts have speculated other highway builders would be interested in Superfos' highway construction business.
Ashland said that was its primary interest, but Superfos' management would not accept a bid for the highway business separate from its other operations, which include packaging and specialty chemicals.
Last week, Superfos' board declined to endorse Ashland's offer, saying it was too low.
Mr. Lampe repeated that Ashland's offer, which expires Monday, is the only one on the table.
“In these situations, the marketplace speaks, and Superfos has heard no other voice,” he said reiterating comments by James Boyd, Ashland's senior vice president.
Ashland said its new offer represents a 51 percent premium over Superfos' average share price for the three months ended July 13.
Ashland shares closed Friday at $37.25, up 621/2 cents, and Superfos closed at 146 kroner, up 4, on the Copenhagen Stock Exchange.
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