A. Schulman Inc, a chemical producer, announced that it withdrew its bid for Ferro Corp. A. Schulman dropped its proposal four months after it offered US$563 million to its smaller competitor.
In the morning trade, the shares of A. Schulman plunged down to greater than 11% to US$24.63. Conversely, Ferro shares fell more than 12% to US$6.19.
"We have given Ferro's board ample time to come back to us to initiate a discussion," A. Schulman Chief Executive Joe Gingo stated on a conference call with experts on Tuesday. "At this time, this has not happened, so we have decided to look elsewhere for acquisition opportunities."
A. Schulman and Ferro sold products utilized in industries like electronics and construction.
In November 2012, A. Schulman initially contacted Ferro. In February 13, it officially proposed a deal through a letter but this was ignored. A formal bid in March was also refused.
On Monday, the company's third quarter results were below the estimates of its analysts. It was believed to be hurt by Europe's slowdown. This resulted to a low adjusted profit prediction for the whole year.
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