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Anglo seals $2B Tarmac
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November 5, 1999: 3:40 a.m. ET
South African miner improves terms to secure U.K. building materials firm
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LONDON (CNNfn) - South African mining giant Anglo American sealed a $1.97 billion takeover of U.K. building materials producer Tarmac Friday, just four days after breaking off talks with its target.
Tarmac's shares soared last week before Anglo unveiled its offer on Oct. 29, only to be rejected by Tarmac's board. Anglo broke off talks Monday but returned Thursday with an improved bid which has been recommended by Tarmac's board.
Anglo, the world's largest gold producer, raised its offer to 585 pence a share from the original 535 pence bid. This values the U.K. firm at around £1.2 billion, a 6 percent premium to Tarmac's Thursday close at 552 pence. Anglo shares closed at 3,175 pence Thursday.
Anglo, which joined London's blue-chip FTSE 100 in June, already has a substantial building materials operations in Britain but has been looking for acquisitions, notably to boost its aggregates business.
Anglo said it has already received acceptance undertakings from shareholders representing 17.5 percent of Tarmac's stock.
Tarmac stock rose 2.9 percent to 568 pence early Friday, while Anglo shares rose 1.6 percent.
-- from staff and wire reports
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Anglo American
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