Sika Offers to Buy Founding Family's Controlling Stake

By John Revill 

ZURICH--Swiss chemicals company Sika AG has offered 2.25 billion Swiss francs ($2.36 billion) to buy its founding family's controlling stake, Swiss media reported Sunday, a move designed to scupper a hostile takeover by France's Saint-Gobain SA.

The management of Baar-based Sika has made the offer to encourage the Burkard family to cancel their agreement to sell their holding to Saint-Gobain for 2.75 billion francs.

Sika chairman Paul Haelg said last week the board was working on alternative proposals to the family, although he declined to give details.

The proposed new Sika deal could see the family retain some shares, which could cover the difference between the two offers if they increased in value, SonntagsZeitung reported, citing two sources.

The family own more than 16% of the stock, which controls 52.9% of the voting of the company. The family's agreement with Saint-Gobain sparked a bitter takeover battle when it was announced in December.

Sika managers and directors have opposed the takeover by Saint-Gobain, which they say will damage the company.

A Sika spokesman was unavailable for comment.

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