Court to rule on bid target Braas Monier's capital hike by Dec. 21

A Luxembourg court will decide by Dec. 21 whether to lift a temporary injunction preventing Braas Monier from raising capital, said the German roof tile maker, which is fighting a hostile takeover by Standard Industries.

U.S. family-owned Standard Industries has offered 25 euros ($26.61) per share in cash for Braas Monier, valuing the German group at about $2.1 billion including debt, but Braas Monier has called on shareholders to reject it.

Braas Monier last month announced plans to issue 3.9 million new shares to its shareholders before Dec. 23, when Standard Industries' offer runs out, which will make it more expensive for the U.S. group to take it over.

Standard Industries obtained the temporary injunction on Dec. 5 in an attempt to prevent Braas Monier from undertaking the capital raising.

"The board continues to recommend that shareholders do not accept the Standard Industries offer and do not tender their shares," Braas Monier said in a statement on Wednesday.

($1 = 0.9395 euros) (Reporting by Maria Sheahan; Editing by Alexander Smith)

Source Business Insider