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Tuesday, March 5, 2013

Ferro says to sell more assets after rebuffing buyout offer, (NYSE: FOE)

Chemical maker Ferro Corp said it would sell more assets that do not generate sufficient returns, a day after it rejected A. Schulman Inc's $563 million takeover offer.The company, which sells products used in industries such as electronics and construction, also said it plans to reduce operating costs by more than $50 million over the next two years.The Mayfield Heights, Ohio-based company on Monday rebuffed Schulman's offer, saying it was better off continuing its own strategy.Analysts said Ferro could generate more value for shareholders if it sold the company in pieces. However, they don't expect Tuesday's announcement to lead to fire sales.

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 2.79% or $-0.19/share to $6.61. 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 2571691.