AVENG: 2 -1 (-33.33%)
South Africa's Murray & Roberts drops Aveng merger plan
(Adds background and detail)
JOHANNESBURG, Aug 8 (Reuters) - South African construction
company Murray & Roberts said on Wednesday that it had
withdrawn plans for a potential merger with rival Aveng
, saying there was "limited potential" for the deal to
"The board will continue to evaluate the possibility of
revisiting the potential transaction in future," the company
said in statement.
Aveng confirmed that it had received a formal notice from
Murray & Roberts to terminate the proposed deal.
Murray & Roberts and Aveng had announced merger plans in
May, but German investment company ATON, Murray & Robert's
biggest shareholder, opposed the deal.
Last week, ATON successfully appealed a decision by a South
African regulator, allowing the deal to be blocked.
ATON, which has a 25.4 percent stake in Aveng, submitted an
appeal to the Takeover Special Committee (TSC) requesting TRP
approval be overturned.
ATON and Murray & Roberts have been in a tug of war since
March when the German company launched a takeover bid for Murray
& Roberts that was rejected as poor value for shareholders by an
At 0821 GMT, shares in Murray & Roberts were up 1.15 percent
while Aveng's shares were up 12.50 pct.
(Reporting by Patricia Aruo
Editing by Ed Stoddard and Jane Merriman)
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