Bodycote Shuns Offer from Sulzer
Sulzer AG, the world’s second-biggest maker of industrial pumps, offered $2 billion for Bodycote International Plc and may make a hostile bid after the metal-treatment company spurned the approach. Sulzer, based in Winterthur, Switzerland, offered 325 pence a share, 41% more than Bodycote’s close on Jan. 25, the day before the British company said it was aware of takeover speculation. According to Sulzer, the company plans to accelerate acquisitions after surging oil prices spurred demand for pumps, mixers and coatings. The approach for Bodycote may also help deflect any bid for Sulzer itself.
Bodycote rebuffed talks after Sulzer twice raised the value of its offer, which began at 305 pence. According to Bodycote, the proposal is “unwelcome” and “significantly undervalues the group and its prospects.”