LONDON (ShareCast) - Shares in Chloride surged ahead after the power supply protection firm said it had rejected a preliminary 255p per share cash offer.
The group received a preliminary approach from a third party regarding a possible offer, which it said was subject to a number of conditions and pre-conditions including due diligence.
“The board of Chloride considered the proposal and concluded that it materially undervalued the company and its prospects. Accordingly, it was not in the interests of Chloride and its shareholders and the board has rejected it,” said the group.
Chloride was responding to a report in the Sunday Telegraph, which suggested potential buyers could be US firms Eaton Corp, Emerson Electric or French outfit Schneider Electric.
The share price of bathroom products maker Qualceram is going down the pan as the slumping housing market continues act as a drag on revenues.
Group turnover in the first quarter was 30% lower than in the corresponding quarter of 2007 after taking into account a 13% slide in the value of sterling against the euro.
The lower level of housing starts in Ireland and the UK plus the weaker economic climate together with the early arrival of Easter, which reduced the number of trading days, dampened sales, the company said.
Trading levels have been much the same in the second quarter and accordingly the company expects turnover for the first half of 2008 to be some 30% lower than it was in the first half of 2007.
In anticipation of a more challenging trading environment the company has been reducing costs and the full benefit of the measures taken is expected to start showing through in the second quarter of 2008.
Qualceram intends to reduce its dependence on the bathroom products market and in the second half of 2008 expects to develop business in the DIY sector and other retail areas.
In respect of the bid approach announced in March, the company is in the process of evaluating the unsolicited approach with the help of its corporate advisers.
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