BPI shares surge on RPC’s £261m offer
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Investors are rushing to buy shares of stretch wrap maker British Polythene Industries following an announcement this morning that plastics company RPC had agreed to buy the Scotland-based group in a £261m deal.
Shares of BPI have this morning surged more than 33 per cent to 970p, zooming past the roughly 960.4p per share offered in RPC’s cash and share deal.
At publication time, shares are trading at 954.5p, slightly below the offer value, but still 31.6 per cent higher than yesterday’s closing price.
RPC is paying each BPI shareholder £4.70 in cash plus six new RPC shares for every 10 BPI shares they own.
The offer represents a 31 per cent premium to the average one month closing price for BPI of 718p.
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