Latest news with #hostiletakeover
Reuters
a day ago
- Business
- Reuters
Billionaire Brad Jacobs' QXO offers $5 billion for GMS, threatens to go hostile
June 19 (Reuters) - Billionaire Brad Jacobs' new building-products distributor QXO (QXO.N), opens new tab made an offer on Wednesday to acquire GMS (GMS.N), opens new tab for about $5 billion in cash and said it will proceed with a hostile takeover if the company's management rejects the proposal. This is Jacobs's second hostile takeover threat in the building sector this year and part of his plan to turn QXO into a $50 billion revenue building-products distributor within a decade. The offer comes three months after QXO clinched an $11 billion deal to buy Beacon Roofing Supply, ending a prolonged takeover battle for the roofing company and significantly expanding its footprint in the U.S. and Canada. An acquisition of GMS would expand QXO's market from roofs into house interior materials, including drywall. QXO's proposal is still technically in the friendly phase, but Jacobs said that if GMS's board did not accept the offer by June 24, QXO was prepared to bypass management. 'If you choose not to engage ... we are prepared to take our offer directly to GMS's shareholders who we're confident will find the offer attractive,' Jacobs said in a letter sent to GMS Chief Executive Officer John Turner. In similar comments made during his takeover offer to Beacon, Jacobs said GMS was poorly managed and could be more profitable to shareholders under his command. Georgia-based GMS said in a statement on Thursday that it has received an unsolicited proposal from QXO that will be reviewed by its board. It did not immediately respond to a Reuters request for comment. GMS operates a network of more than 300 distribution centers and its product lineup includes wallboard, ceilings, steel framing and gypsum. Both Beacon and GMS operate primarily in the U.S., with additional presence in Canada. The U.S. building industry, mostly locally sourced and fairly protected from tariffs, is undergoing consolidation. QXO said it offered $95.20 per share for all outstanding shares of GMS, a premium of about 17% over the company's closing price on Wednesday. In the letter, Jacobs disclosed he first approached Turner in June last year, with conversations continuing until at least May 22, when the two CEOs met in New York. Jacobs added his decision to take the offer public came after GMS's shares rose following market speculation over a potential QXO acquisition. The offer represents a 29% premium over GMS's value on May 22, he said. On Wednesday, before the offer was made public, shares of GMS hit their highest level in almost five months after the company reported upbeat quarterly results and announced an additional $25 million in annualized cost reductions. Jacobs said following the private talks with Turner, he heard from industry participants that J.P. Morgan and Jefferies bankers had been aggressively trying to find other suitors to buy GMS. Home improvement chain Home Depot (HD.N), opens new tab has also made an offer for GMS, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Spokespersons for Home Depot and GMS declined to comment on the report. Goldman Sachs and Morgan Stanley are acting as financial advisers to QXO. And Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel. Jacobs has built an empire of multibillion-dollar companies spanning industries from logistics to waste management and equipment rentals by acquiring companies in industries undergoing consolidation, and spinning some of them off at a higher value. QXO was a relatively small software company until 2023, when Jacobs invested about $1 billion and renamed and repurposed it.
Yahoo
5 days ago
- Business
- Yahoo
MEG Energy's board urges shareholders to reject Strathcona's $4.42 billion offer
(Reuters) -Canadian oil producer MEG Energy on Monday urged its shareholders to reject a nearly C$6 billion ($4.42 billion) hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in their best interest. The board also launched a strategic review to explore alternatives that could lead to a better offer than MEG's current plan to be a standalone company. In May, the Canadian oil and gas producer Strathcona Resources said it planned to launch a hostile takeover bid for MEG Energy, valuing its rival's shares at C$23.27 per share. MEG's last close was C$25.71. Later, MEG advised its shareholders to not take action on the unsolicited takeover bid. Since 2020, Strathcona, owned by Calgary-based private equity firm Waterous Energy Fund (WEF), has become one of the fastest-growing oil companies in North America through a series of acquisitions. If the takeover were to go through, WEF would own 51% stake in the combined company, making it a vehicle for WEF and its investors to sell their material ownership over time, MEG Energy said. "This selling pressure, or even the perceived risk of such selling pressure, will place immediate and significant downward burden on the share price of the combined company for a prolonged period of time," the company said in a statement. Strathcona Resources did not immediately respond to Reuters request for comment. ($1 = 1.3563 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
MEG Energy's Board Rejects Strathcona's $4.1 Billion Takeover Bid
By Updated on Save MEG Energy Corp.'s board is urging investors to reject what it calls an 'inadequate, opportunistic' $4.1-billion hostile takeover bid from Canadian oil tycoon Adam Waterous' Strathcona Resources Ltd. The offer is too low and will hurt MEG's share price, the Calgary-based company said in a statement Monday. MEG's board authorized it to begin a strategic review with the potential to find a better offer.
Bloomberg
11-06-2025
- Business
- Bloomberg
Taiwan to Restrict Hostile Takeovers in Crowded Financial Sector
Taiwan regulators announced plans to effectively block hostile takeovers in the island's crowded financial sector, months after preventing a roughly $4.1 billion deal that would have created Taiwan's largest financial group. The Financial Supervisory Commission will amend rules to close the door to non-consensual mergers and acquisitions to ensure market stability, it said in a statement late Tuesday. In the future, acquiring financial firms must get a board resolution from the target company indicating no objection, or show that they can secure a majority of shares or board seats to complete the acquisition, the FSC said.
Bloomberg
04-06-2025
- Business
- Bloomberg
GeoPark's Shareholder Plan Creates Opening to Thwart Hostile Bid
Latin American oil and gas producer GeoPark looks to be making moves to defend itself form a hostile takeover after a rival energy firm took a large stake in the company. In a shareholder rights plan announced on Tuesday, Bogotá-based GeoPark adopted a mechanism for rights to become exercisable if an entity or person acquires ownership of 12% or more in the company. The move follows a recent SEC filing by Pampa Energy Inc., which reported a 10.17% holding in GeoPark.
