Market Commentary and Intraday News
Rona rejects Lowe's takeover bid
296 days ago
(AP:MONTREAL) Canadian home improvement chain Rona Inc. has rejected a $1.76 billion Canadian (US$1.75 billion) unsolicited takeover offer from U.S. home improvement retailer Lowe's.
The Montreal-area company, based in Boucherville, Quebec, said Tuesday the offer from its American rival wouldn't be in its shareholders' best interest and Rona will be looking at other options. Rona says it received the offer on July 8 and told Lowe's on July 26 that it was rejecting the proposal.
Lowe's offered to acquire all its shares for CA$14.50 (US$14.69) each, more than CA$2.50 per share above Rona's closing stock price on Monday. Rona shares closed Monday at CA$11.87 on the Toronto Stock Exchange.
Headquartered in Mooresville, North Carolina, Lowe's is relatively small in Canada _ with only about 16 stores and about 2,800 employees. Lowe's is second-largest home-improvement chain in the United States.
Rona has more than 30,000 employees operating a network of nearly 800 stores under several banners as well as 14 hardware and construction distribution centers.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.