Ferro Corp. Gets Unsolicited Buyout Offer

Source: Thinkstock
Specialty chemicals firm Ferro Corp. (NYSE: FOE) has received an unsolicited buyout offer from A. Schulman Inc. (NASDAQ: SHLM), another provider of specialty chemicals and plastics. The total value of Schulman’s offer is about $563 million, or $6.50 a share, of which half will be paid in cash and half in A. Schulman common stock.

According to A. Schulman’s press release, the offer represents a 25% premium to Ferro’s closing price on Friday and a 32% premium over the volume-weighted average trading price for the past 60 days. Including debt, A. Schulman’s offer totals $855 million.

A. Schulman said its offer was based on publicly available information for the first nine months of Ferro’s 2012 fiscal year. In February, Ferro rejected an offer from A. Schulman that had expressed its “strong intent” to combine with Ferro.

Shares of Ferro are up 30% in the first half-hour of trading this morning, at $6.76 after hitting a new 52-week high of $6.82 earlier. The prior 52-week range was $2.38 to $6.39.

A. Schulman’s shares are also trading higher, up 1.4% at $31.55 in a 52-week range of $17.75 to $33.40.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.