FRANKFURT, June 24: Chemical maker Covestro said Monday that it had entered into "concrete negotiations" with the United Arab Emirates national energy firm ADNOC after a takeover proposal valuing the German group at nearly 12 billion euros ($12.8 billion).
Covestros shares surged more than five percent in Frankfurt after the announcement, which comes after it first disclosed talks were ongoing with the UAE firm in September last year.
"The discussions so far have shown that Covestro and ADNOC can generally reach a common understanding regarding core aspects of a possible transaction," Covestro in a statement.
It said the "starting point" for talks was a "possible offer price" of 62 euros per share from ADNOC. This would value Covestro at 11.72 billion euros, according to an AFP calculation.
"At this time, there is no certainty whether the upcoming negotiations will lead to an agreement. There is also no certainty as to the final terms of any such agreement," said Covestro. —AFP
