Elementis jumps as it rejects takeover approach from US firm Minerals Technologies

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Elementis PLC (LON:ELM) said it has “unanimously rejected” a takeover proposal from US firm Minerals Technologies Inc (NYSE:MTX), saying the offer “significantly undervalued” its prospects.

On Thursday, Minerals Technologies confirmed that it had approached the board of Elementis on November 5 regarding an all-cash offer of 107p per share, a 31% premium to the company’s closing price on November 4, the day before the approach was made.

READ: Elementis slips as coronavirus pandemic continues to weigh on trading

However, Minerals Technologies said that Elementis had rejected the proposal on Tuesday and that it is currently considering its position, with no certainty that a further proposal will be made.

Shares in Elementis rose 8.8% to 106.6p in mid-morning trading, just shy of the rejected offer price.

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