Dallas-based ElkCorp rejects BMCA buyout offer

by PegNews wire

DALLAS — Dallas-based roofing materials manufacturer ElkCorp says its board has recommended against a buyout offer from Building Materials Corp. of America. The buyout was originally announced in late December and was subject to review by ElkCorp's board.

ElkCorp (NYSE:ELK) said Monday that its board recommended shareholders reject BMCA's $40-a-share, or $824 million, offer, but the company is still in active negotiations with BMCA to develop a deal that would "merit recommendation to ElkCorp's shareholders."

The board said Wayne, N.J.-based BMCA's tender offer was "excessively conditional" and lacked the appropriate financing.

ElkCorp said Monday that its board still favors an earlier bid by an affiliate of The Carlyle Group. The company agreed in December to be acquired by an affiliate of Washington, D.C.-based Carlyle for $38 a share in cash, or about $783 million, and the assumption of $173 million in debt.

Source: ElkCorp

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Anonymous

Blue Shoe Mike, says:

<center><h2>Don't let the term "private equity group" fool you. The Carlyle Group is as dirty as it gets folks. </h2>

<p> <embed flashvars="" id="VideoPlayback" src="http://video.google.com/googleplayer.swf?docId=7094545816220336237&hl=en" style="width:400px; height:326px;" type="application/x-shockwave-flash"> <br> (Fast forward a few minutes to get the English part with interviews)

</p><p> Additonal Reading:

http://www.truthout.org/docs_01/01.11...

</p></center>