Glass firm spurns £2bn approach from its biggest shareholder

Glass maker Pilkington has rejected a £2bn takeover approach from its largest shareholder.

The firm turned down two proposals from Nippon Sheet Glass because it said they were too low.

The offer an 8p per share increase on Nippon’s initial offer for the firm.

In a statement Pilkington said Nippon Sheet Glass had only been willing to make a formal offer subject to pre conditions such as completion of financing. It said: “The Board of Pilkington has considered the revised proposal and has informed Nippon Sheet Glass that the pre-conditions are unacceptable and the price still falls short of a level which it would be prepared to recommend.”

In response, Nippon Sheet Glass said that there were no further discussions between the firms and there was no guarantee that it would make an offer for Pilkington.

Nippon Sheet Glass owns 20% of Pilkington and analysts believe the firm could make savings by combining its UK subsidiary with Pilkington’s headquarters as both are based in St Helens on Merseyside.