(Updates with further comments on Norddeutsche Affinerie merger)
BRUSSELS (Thomson Financial) - Cumerio chief executive officer Luc Delagaye
said the copper group's proposed 780 mln eur merger with German peer
Norddeutsche Affinerie AG (NA) is going "according to plan".
Delagaye was speaking to reporters here following the group's first half
results.
He said the deal had not been blocked by major Cumerio shareholder A-TEC
Industries AG, the Austrian industrial group, although there are ongoing
discussions between A-TEC and NA.
A-TEC has remained quiet on its industrial strategy after building up a
25.01 pct stake in Cumerio, which it could use to block the merger.
NA's agreed takeover bid for Cumerio is conditional on shareholders
representing at least 80.0 pct of shares accepting the offer. NA has a 25.11 pct
share in Cumerio.
Delagaye urged the two parties to come an agreement, confirming that Cumerio
is not part of the negotiations. "These two shareholders have to agree on a
common strategy. They have to agree...to come up with a solution. We have a deal
on the table."
The CEO remains optimistic that an agreement can be struck. "This deal
should go through. I expect it to go through," he said. When asked if he is
frustrated by the current impasse, he maintained that he was not.
"We fully support this deal as the best deal for Cumerio," he added.
The merger would form Europe's leading copper maker and processing group,
with initial estimates showing annual synergies of 15.0-20.0 mln eur.
The CEO noted that the transaction also has to be cleared by EU and Swiss
regulatory authorities. He also noted that the Belgian stock market regulator
CBFA continues to analyse the prospectus.
Earlier, Cumerio posted a narrower-than-expected fall in first half
recurring EBIT and upped its full year guidance.
The copper group recorded recurring EBIT of 39.6 mln eur, down from 40.1 mln
eur, hit by lower treatment and refining charges and a weak dollar versus the
euro. The result was better than 29.5-35.9 mln forecasts.
Net profit for the period was 26.4 mln eur, down from 33.5 mln and in line
with 23.1-27.2 mln estimates.
simon.zekaria@thomson.com
sz/dca/sz/sz/dca
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