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(ShareCast News) - CRH's proposed $3.5bn acquisition of US-based Ash Grove has been derailed after the Kansas company received a potentially larger rival offer.
In a statement overnight, Ash Grove said it would hold a shareholder meeting on 1 November to "consider and vote on a proposal" to accept the CRH offer, after receiving a "preliminary, non-binding competing proposal from a third party" to acquire it for an indicated value of $3.7-3.8bn.
Reports on Friday suggested that Summit Materials was the third party.
Ash directors said they felt the new proposal "could reasonably be expected to result in a superior proposal" to the CRH offer and so have begun talks with the new suitor.
The US company has therefore told CRH and a 'window shop period' has been extended until 1700 New York time on 20 October.
"There can be no assurance that such competing proposal will lead to a definitive offer or, if such an offer is made, that the board of directors will determine that such offer is superior to the transaction with CRH plc," Ash said, adding that its board "continues to recommend, that Ash Grove stockholders vote in favor of the proposal to adopt the agreement and plan of merger with CRH".
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