Klockner Werke AG of Duisburg, Germany, has rejected a takeover offer by real estate conglomerate WCM Beteiligungs- und Grundbesitz AG. WCM plans to pursue the deal anyway, now as a hostile bidder.
Klockner, parent of film and sheet producer Klockner Pentaplast GmbH, said Dec. 20 that being part of WCM "does not create added value for Klockner Werke since there are no identifiable synergies between the two companies."
WCM of Frankfurt has been buying Klockner shares since December 1999 and recently announced it held 40 percent of the stock. WCM offered one WCM share and 7 euros ($6) in cash for each of the remaining Klockner shares.
Klockner said its board prefers an all-cash offer because it cannot assess WCM's share value now and in the future.
Klockner Pentaplast owns Klockner Pentaplast of America Inc. of Gordonsville, Va.
Klockner Werke said it "has been on a strong upward trend for five years" and that its share price has risen to reflect the growth. The company recently announced it will focus on its film business "to tap into huge additional potential for creating value." WCM said when it announced its takeover offer that it would support emphasis on Klockner's film business.
Publicly traded WCM rents out commercial and residential buildings in Germany and has investment stakes in a wide range of industrial companies. Its sales last year were 335 million euros ($287.1 million).
Agence France-Presse reported that Klockner's refusal of the WCM offer would make the offer the third hostile takeover bid in German history.