ADNOC Plans To Increase Takeover Proposal For Germany's Covestro: Report
Portfolio Pulse from Lekha Gupta
Abu Dhabi National Oil Co. (ADNOC) is reportedly planning to increase its takeover offer for Germany's Covestro AG to about €60 per share, valuing the company at approximately €11.3 billion ($12.3 billion). This comes after Covestro rejected an initial offer from ADNOC as 'too low'. The new proposal includes job guarantees and an $8 billion investment post-deal. Covestro's Q3 sales were down 22.7% with EBITDA decreasing by 8.3%, aligning with their guidance. Covestro's stock (COVTY) closed lower by 1.15% at $29.25 on Wednesday.
December 21, 2023 | 2:01 pm
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ADNOC plans to increase its takeover bid for Covestro AG to €60 per share, which is higher than the previous offer and the current stock price. The deal includes job security and significant post-deal investment.
The increased offer from ADNOC is likely to have a positive impact on Covestro's stock price in the short term as it represents a premium over the current stock price and the previous offer. The commitment to job security and future investment may also be viewed positively by investors, potentially increasing the stock's attractiveness.
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