Bloomberg reported today, Thursday, citing informed sources that the German company "Covestro" has rejected an acquisition offer from the Abu Dhabi National Oil Company (Adnoc), stating that "the offer is very modest." Following the publication of this report, the stock price jumped by 3.7% after trading at a lower value earlier in the day. Two informed sources told Reuters on Tuesday that "Adnoc approached Covestro with an acquisition offer worth more than ten billion euros (11 billion dollars)." Both Covestro and Adnoc declined to comment on Thursday's report.
Arne Rautenberg, a fund manager at Union Investment, told Reuters that "Covestro is in a very strong position, and its profits heavily depend on the overall state of the economy, and it is currently undervalued. The acceptance of this acquisition offer by current shareholders might depend solely on the price." Covestro published profit forecasts in April that reassured markets about the company's growth prospects and also resumed a share buyback program. However, an industrial investor indicated that the supply and demand for polyurethane is declining, and that "Covestro" might accept a higher offer between 60 and 65 euros per share.
