The New York City-based group revealed that it had made a bid on Nov. 5 to acquire the UK specialty chemicals firm, but the Elementis board rebuffed the all-cash offer, stating it significantly undervalued the firm and its future prospects.

The bid of $1.41 per share represented a 31% premium over Elementis’ share price on Nov. 4.

According to UK law, MTI now has until Dec. 10 to state whether or not it intends to make a formal and public offer for Elementis.

Both companies supply materials derived from mined minerals. Elementis also produces specialty chemicals for consumer and industrial applications and regards itself as the leading global producer of chromium chemicals. It reported sales of $874 million last year.

With annual sales of about $1.8 billion, MTI is a leading supplier of bentonite and bentonite-related products, as well as chromite and leonardite, to industrial and consumer markets globally. It also produces and sells synthetic mineral product precipitated calcium carbonate (PCC).

MTI said it is now considering its position, adding that there is no certainty that it will make any further proposal or firm offer, although any offer would likely be solely in cash.

Author: Elaine Burridge, Freelance Journalist