W.R. Grace rejects $4 billion takeover and more business news

Business tile / Photo courtesy of Getty Images

W.R. Grace rejects $4 billion takeover

W.R. Grace & Co. has turned down a $4 billion takeover offer, saying the bid "significantly" undervalues the specialty chemicals giant.

40 North Management LLC, an investment arm of New York-based building materials company Standard Industries, proposed Monday to acquire all of Grace's outstanding common stock for $60 a share in cash.

Shares of Grace, which had been trading under $45 last week, spiked Monday to close $55.99 each, but were trading down 2.2% Tuesday at $54.75 each.

The unsolicited offer from Grace's largest shareholder represented a 36% premium over Grace's closing price Friday and a 42% premium over the stock's 30-day volume-weighted average price.

In a letter to Grace's board of directors, Standard co-CEOs David J. Millstone and David S. Winter said their bid offers both value and certainty given significant underperformance since Grace spun off GCP Applied Technologies in February 2016.