CLERMONT-FERRAND, France (April 24, 2003)—Group Michelin has launched a $94 million bid to acquire the 30 percent of shares in its Polish subsidiary Stomil-Olsztyn S.A. that it currently does not own.
Initiated April 15, the bid by group affiliate Compagnie FinanciÃ¨re Michelin will run until the end of the month. It carries an offer price of 46.5 Polish zlotys ($11.92) for each of the 8.1 million outstanding shares, Michelin said.
The offer signals a renewed determination by Michelin to end a three-year dispute with other Stomil-Olsztyn investors, who have been hostile to Michelin's running of the company. The French group previously had offered to buy out the minority shareholders for just zlotys 24.5 per share.
The planned shares acquisition “is part of the process to optimize and simplify group structures,” Michelin said in a prepared statement.
Michelin originally purchased a 52-percent stake in Stomil-Olsztyn S.A. for $112 million in December 1995. At that time the Polish government retained 48-percent ownership, but intended to offer 16 percent to the firm's employees.