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Jotun to block takeover bid

August 31, 2011

Orkla offerred $933 million for the Norwegian paint maker.

Jotun AS has blocked a $933 million takeover offer from Orkla ASA , a Norwegian maker of pizzas and bathroom cleaners, according to Jotun chairman Odd Gleditsch. The Gleditsch family owns 59 percent of Jotun's voting rights and said it does not want to relinquish control. Orkla, which holds 38.2 percent of Jotun's voting rights, said that paints and coatings is a market well aligned with its long-term strategy and that buying Jotun could be a way for the company to participate in the future consolidation of the industry. Orkla said it hopes the family bites on the $13,075 per share offer it has made, which would give it 90.9 percent of the voting right. If accepted, the transaction would lift Orkla’s holding in Sandefjord-based Jotun to 63.6 percent from 42.5 percent. The offer is conditional upon Orkla gaining a stake of more than 50 percent of the voting rights. The acceptance period expires on Sept. 30.