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Monday, April 4, 2011

Solvay bids 3.4 billion euros for France's Rhodia, (SOLB), (RHA), (NYSE: ABT)

Belgian chemicals and plastics maker Solvay (SOLB.BR) said on Monday it will buy French chemicals company Rhodia (RHA.PA), valuing the firm at 3.4 billion euros and ending a year-long hunt for a takeover deal. Solvay, which sold its drugs unit to its U.S. partner Abbott Laboratories (ABT.N) in September 2009 for 4.5 billion euros, said it would bid 31.60 euros per share for Rhodia in a deal that was unanimously recommended by Rhodia's board of directors. The offer price constitutes a premium of 50 percent compared to the latest closing share price of Rhodia, giving an enterprise value of 6.6 billion euros and a recurring earnings befire interest, tax, depreciation and amortisation of 7.3 times.