3M launches tender offer for Ceradyne deal
ST. PAUL, Minn. -- A 3M Co. subsidiary launched a tender offer Monday for all outstanding shares of common stock of Ceradyne Inc. as part of the office supply company's plan to buy the ceramic components maker.
3M, which makes Post-It notes and other products, announced in September that it was buying Ceradyne for $847 million.
3M subsidiary Cyborg Acquisition Corp. is offering $35 for each share of Ceradyne. The offer is scheduled to expire Nov. 27. The $35-per-share offer is a 43 percent premium to the company's price before the announcement of the deal in September.
Ceradyne's board has unanimously recommended shareholders accept the offer. A majority of Ceradyne's shares must be tendered in the offer for the acquisition to move forward.
3M's shares fell 23 cents to $92.52 in midmorning trading. Shares of Ceradyne, based in Costa Mesa, Calif., were unchanged at $35.