Vesuvius abandons Morgan Advanced Materials talks

1st Dec 2014 09:08

Morgan Advanced Materials announced on Monday that metal flow engineer and developer Vesuvius does not intend to make a formal offer.On 27 October, Vesuvius made a preliminary proposal to Morgan Advanced Materials for an all-share merger between the two companies, but the board of the Windsor-based firm said the proposal undervalued its existing business and prospects."The proposal would have diluted Morgan Advanced Materials shareholders' exposure to attractive, diverse and secular growth markets," Morgan said in a statement on Monday.Vesuvius said that it believed a merger between the two firms would have created a higher margin firm, but that it did not want to make an offer for Morgan, after the initial proposal was rejected."The proposal was rejected by the board of Morgan without discussions taking place. As a result Vesuvius confirms that it does not now intend to make an offer for Morgan," Vesuvius said in a separate statement.Morgan shares were up 4.22% to 304.10p at 09:58 on Monday.