Dallas-based ElkCorp has entered a definitive merger agreement
with Building Materials Corp. of America, Wayne, N.J., parent
company of GAF Materials Corp., Wayne.
ElkCorp announced Feb. 9 that GAF Materials will amend its
existing offer to acquire all of ElkCorp's outstanding common stock
for $43.50 per share in cash. This represents a premium of almost
73 percent more than ElkCorp's closing share price Nov. 30, 2006,
the last trading day before ElkCorp announced it was reviewing its
Following the purchase of outstanding shares of ElkCorp stock,
the stock will be cancelled and converted into $43.50 per share
without interest. The offer values ElkCorp at about $1.12 billion,
including the assumption of $173 million of net debt. Building
Materials Corp. of America has received financing commitments from
Deutsche Bank AG, Frankfurt, Germany; Bear, Stearns & Co. Inc.,
New York; and J.P. Morgan Chase...
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