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Tuesday, March 5, 2013

Ferro offloading assets after rebuffing A. Schulman's buyout offer, (NYSE: FOE)

Chemical maker Ferro Corp said it is offloading assets that cannot generate sufficient returns, a day after it rejected A. Schulman Inc's $563 million takeover offer. The company will redeploy, divest or curtail assets, Ferro said in its fourth-quarter earnings statement.Ferro, which sells products used in industries such as electronics and construction, also said it was reviewing its product lines to determine potential to create value and generate cash.The Mayfield Heights, Ohio-based company on Monday rebuffed Schulman's offer, saying it was better off continuing its own strategy.Ferro could generate more value for shareholders if they sold the company in pieces, Longbow Research analyst Dmitry Silversteyn said on Monday.

Ferro Corporation (Ferro) is a producer of specialty materials and chemicals that are sold to a range of manufacturers who, in turn, make products for many end-use markets. Shares of FOE fell by 0.59% or $-0.04/share to $6.76. In the past year, the shares have traded as low as $2.38 and as high as $6.95. On average, 1942770 shares of FOE exchange hands on a given day and today's volume is recorded at 136239.