MUNICH, April 17 - German medical packaging manufacturer Gerresheimer has declined a takeover overture from U.S. peer Silgan, according to three people familiar with the situation. The sources said there are no ongoing negotiations between the two companies.
One source indicated that Gerresheimer prefers to direct its attention toward settling its accounting problems and completing a potential sale of its U.S. subsidiary, Centor, before engaging in any further strategic discussions. Details provided to reporters said Silgan had signalled interest earlier with a non-binding proposal valuing Gerresheimer at 41 euros per share, a level described as more than double the firm’s current trading price.
Gerresheimer declined to comment on market rumours through a company spokesperson. Silgan did not reply to a request for comment. The earlier report that Silgan had expressed interest noted the 41-euro figure; the reporting also gave an exchange rate of $1 = 0.8488 euros.
Summary
Three sources say Gerresheimer has rejected Silgan’s approach and that discussions have stopped. Gerresheimer is reportedly focused on addressing accounting issues and exploring the sale of Centor. Silgan had previously indicated a non-binding offer of 41 euros per share.
Key points
- Gerresheimer has refused a takeover overture from Silgan, according to three sources.
- The two companies are no longer in talks, per the sources.
- Gerresheimer is prioritising resolution of accounting issues and the sale of its U.S. unit Centor.
- Silgan’s interest was previously reported as a non-binding 41-euro per share proposal, more than double the company’s current share price.
Risks and uncertainties
- Uncertainty around the resolution of Gerresheimer’s accounting issues could affect the firm’s strategic options and timing for any deal - this carries implications for the medical packaging sector.
- The potential sale process for Centor introduces execution risk and timing uncertainty for Gerresheimer and parties that may be interested in the business - relevant to investors in industrials and healthcare packaging.
- With no comment from either company, market participants face informational gaps that could sustain share-price volatility for companies in the packaging and medical supplies sectors.
Market context
The sources’ account places Gerresheimer’s near-term priorities on internal financial remediation and an asset sale rather than pursuing or accepting a change of control now. The earlier-noted non-binding figure of 41 euros per share remains the only publicly reported valuation tied to Silgan’s stated interest; Gerresheimer’s official response was limited to declining comment on market rumours, and Silgan did not respond to requests for comment.
Given the limited official statements, observers must rely on the information provided by the sources about the halt in talks and Gerresheimer’s stated focus areas.
Reporting is based on information supplied by sources familiar with the situation. No further official comment was provided by the companies named.