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Covestro (OTCPK:CVVTF) on Friday rose as much as 11% after disclosing its management board decided to begin formal talks about a $12.4 billion takeover bid by Abu Dhabi National Oil Company ((Adnoc)).
The possibility that a deal “will be reached is open and will depend on the course of the forthcoming discussions,” Covestro (OTCPK:CVVTF) said in a statement.
The German chemical maker’s decision follows weeks of discussions between the companies’ advisers about an agreement valuing Covestro (OTCPK:CVVTF) at €11.6 billion ($12.4 billion) or more, Bloomberg News reported Friday.
State-run Adnoc is willing to fund about $8 billion in investments at Covestro (OTCPK:CVVTF) after completing the deal, an offer that may help to gain support from executives and labor officials, Bloomberg News reported, citing people familiar with the matter who asked to not be identified because the discussions aren’t public.
