- Covestro investors press company to enter talks with ADNOC

By News Team, Rush Hour Daily

Updated on August 24th, 2023

covestro-investors-press-company-to-enter-talks-with-adnoc

Two top-15 investors of German chemicals maker Covestro have urged the company to engage in formal takeover talks with Abu Dhabi National Oil Co (ADNOC) in the interest of its shareholders. ADNOC had made a non-binding offer of 55 euros per share in June, which was rejected. However, ADNOC recently signaled that it could raise its offer to 60 euros per share if Covestro enters formal talks. Union Investment fund manager Arne Rautenberg emphasized the need for Covestro to enter formal discussions to avoid speculation and market uncertainty. The higher offer would value Covestro at about 11.6 billion euros. Another shareholder warned that further uncertainty could lower Covestro’s shares, which are currently trading at 47 euros. Covestro has declined to comment on the matter. The chemicals sector in Germany is facing a drop in demand, and Rautenberg and the other shareholder highlighted the need for agreement on location and jobs. While ADNOC’s offer is considered a good deal, Covestro may want a higher price. Covestro’s shares trading below the reported offer price suggests skepticism about the deal. Covestro recently appointed Christian Baier as CFO, who has dealmaking experience at Permira.