| ElkCorp, which manufactures Elk brand premium roofing and building products through its subsidiaries, has become the target of a buyout offer from rival Building Materials Corp. of America (BMCA). BMCA has proposeed to acquire ElkCorp for $35 per share in cash.
Earlier this month, ElkCorp’s Board of Directors hired UBS Investment Bank to explore strategic options for the company.
If the statement from ElkCorp is any indication, the two companies are not on the best of terms from the outset:
“Regarding BMCA’s unwillingness to execute a customary confidentiality and standstill agreement, several parties have already signed our form agreement and are actively participating in our process, including by submitting indications of interest. We have simply requested that BMCA do likewise and participate on a fair and even basis with other interested parties. A number of the assertions in BMCA’s letter are simply incorrect. Among other things, BMCA indicated no willingness to compromise on the terms of the agreement, insisting instead on preferential treatment not justified by their offer.
See elkcorp.com for more information.
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