LONDON (Dow Jones) - U.K. plasterboard maker BPB Plc on Thursday ended a five-month takeover battle with Saint-Gobain, the world's No. 1 supplier of building materials, as it backed the French firm's revised cash offer valuing BPB at $6.7 billion .

The deal ends a saga started in July when Saint-Gobain first said it was mulling an offer for BPB . The U.K. company has spurned four earlier attempts.

BPB accepted an offer valued at 3.89 billion pounds, or 775 pence a share.

"I think it's good. It's an acquisition in a growth market. The price is a bit higher than the 760 pence a share we were looking for, but it's not catastrophic. Now we have to wait to know a bit more about future investments and synergies," said Julien Picard, an analyst with Banque Privee Fideuram Wargny.

BPB shares were last up 3.7% to 769p a share in London, and Saint Gobain shares rose 2.5% in Paris .

Saint-Gobain initially offered 675p per BPB share before launching a hostile takeover bid of 720p a share in August.

The agreed offer, at 775 pence a share, represents a 51% premium to before Saint Gobain made its initial bid and a 4.5% premium to Wednesday's close.

"BPB's strategy has been to provide superior growth as a focused independent company," BPB Chairman Sir Ian Gibson said in a statement. "However, Saint- Gobain have today made a compelling offer which delivers full value for BPB's world leading position and its future prospects."

BPB said its directors unanimously decided to recommend the improved bid to shareholders.

Deutsche Bank analysts said earlier on Thursday that the deal is "excellent news" for Saint-Gobain .

The deal will allow Saint-Gobain to become the world's No. 1 supplier of interior walls and ceilings. Saint-Gobain had long been keen to expand into the plasterboard market, where BPB is a leading force.

BPB earlier this month said it expects earnings to growth at least 10% over the next five years as U.S. construction surges and demand for its plaster and wallboards surges in markets like China .

(END) Dow Jones Newswires

11-17-05 0541ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.