Shares of Ferro Corporation (FOE) rose an incredible 30.8% in Monday's trading session. The producer of specialty materials and chemicals confirmed that it has received and rejected an unsolicited proposal from A. Schulman (SHLM) to acquire the business.
In a reaction to the news, shares of Ferro rose to $6.80 per share, trading 4.6% above the proposed take-out value. Shares fell back some 3% on Tuesday after the company reported its fourth quarter results. Shares of A. Schulman hardly reacted to the proposal which is surprising given that a possible deal would be significant for A. Schulman.
The proposal
Ferro Corporation announced that its board of directors received a proposal from A. Schulman to acquire the business for $6.50 per share in cash and stock. The board declined the offer, claiming that the deal would not be in the best interests of shareholders.
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