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Rexham Agrees To Be Acquired For $226 Million

October 16, 1987 GMT

CHARLOTTE, N.C. (AP) _ Rexham Corp. has agreed to be acquired by the British company Bowater Industries PLC for about $226 million, spurning an unsolicited takeover bid led by New York investor Asher Edelman.

The $60.25-a-share deal, announced on Thursday and approved by shareholders of both companies, surpasses Edelman’s $53-a-share offer made last month.

Under the agreement, a Bowater unit will make a cash tender offer for all Rexham shares outstanding.

Manny Pearlman, a spokesman for Edelman, whose investor group holds an 8.6 percent stake in Rexham, said, ″We will review the (Bowater) offer and at that time make a decision about what we want to do.″

Earlier this week, Edelman sent a letter to Rexham Cheif Executive Officer Scott Lea saying his group was considering taking its acquisition proposal directly to Rexham’s shareholders.

Rexham manufactuers printed, coated, laminated and extruded plastic, paper, foil and other materials. It also produces specialized packaging machinery and precision components and systems used in aerospace and defense.

Bowater, based in London, is an industrial holding company with divisions serving a number of industrial and consumer markets.