Chemical manufacturer Ferro Corp. announced its plan of selling more assets that are not generating good returns after it declined a $563 million buyout offer from A. Schulman.
Ferro, also a provider of products such as electronics and other construction materials, also revealed that it would cut its operating costs by over $50 million over the next 2 years.
The company, which is based in Mayfield Heights, Ohio, rejected A. Schulman's takeover bid, explaining that focusing on its own strategy is far much better to do.
According to analysts, the company would be able to general more shareholders' value if it will sell its assets in pieces. In February, Ferro divulged on a call that it gained $11 million from the sale of the assets of its conductive paste business to a Germany company.
To add to its uncertainty, Ferro incurred a dramatic rise in its net loss from $61 million or 76 cents per share to $64 million or 74 cents per share as its electronic materials business saw consistent sales drop.
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