U.S. News

Cemex Increases Stake in Australia's Rinker


Mexico's Cemex said on Monday it has increased its interest in takeover target Rinker Group, as it ramps up pressure on shareholders to accept its $14 billion takeover bid.

Cemex , the world's No. 3 cement maker, said its holding in Rinker rose to 29.19% from 28.15% in its previous update.

Shares held under an institutional acceptance facility, which allows institutions to withdraw their acceptances, rose to 12.38% from 11.27%, giving a total interest of 41.57% from 39.42% previously.

Cemex has extended the deadline for its offer to June 22 from June 8. Last month it lowered the level of acceptances needed for a successful bid from 90% to 50%.

Shareholder opposition has scuppered several high-profile Australian takeover bids this year, but Cemex has already won the support of fund manager Perpetual, which held a 10.5% stake in Rinker.

Rinker shares closed at A$19.15 on Friday, below the offer price of about A$19.39 a share, based on the U.S. dollar bid price of $15.85 a share at current exchange rates.