STORY CONTINUES BELOW THESE SALTWIRE VIDEOSFRANKFURT - Germany's Covestro should engage in formal takeover talks with Abu Dhabi National Oil Co in the interest of its shareholders, two top-15 investors of the plastics and chemicals maker told Reuters.
Earlier this month, ADNOC verbally signalled to Covestro, which has not officially commented on the takeover approach, that it could raise its informal offer to 60 euros per share conditional on the German company entering formal talks, Reuters reported. The higher offer would value Covestro, which produces foam chemicals used in mattresses, car seats and insulation for buildings, at about 11.6 billion euros .
Beyond price, the two parties will need to agree on location and jobs, Rautenberg and the other shareholder said, with the latter adding that there seemed to be interest in keeping the firms separate and Covestro remaining independent.