DUFFOUR IGON GIVES BACKING TO AGA TAKEOVER BID
French industrial gas group <Duffour et
Igon> has decided to back the takeover bid by Swedish
industrial gases group Aga AB <AGA.ST>, ending a lengthy battle
between rival bidders from France, Spain and West Germany,
Duffour et Igon Chairman Jean Igon said.
    The board agreed late last night to back the Aga bid and
advise its shareholders to accept the Swedish group's latest
offer of 4,410 francs per share, he told Reuters.
    The other main bidders were Union Carbide Corp's <UK.>
French subsidiary <Union Carbide France> and West Germany's
Linde AG <LING.F>.
    Aga topped rival bids for the gases distribution group in
May by raising its offer to 4,410 francs from 4,000 francs.
    This was accepted by Spain's <Carburos Metalicos SA> which
sold Aga six pct of Duffour et Igon's stock and the right of
first refusal on the remaining nine pct of stock it holds. It
also won over the French Midi-Pyrenees development authority
which agreed to sell Aga its 20 pct stake in Duffour et Igon.
    Under Aga's offer, shareholders can either accept a cash
bid or exchange one share in Duffour et Igon for one bond of a
nominal value of 4,410 francs with a 10 pct coupon issue by Aga
France SA. The bond issue is guaranteed by the parent Aga AB.
    The takeover battle for the Toulouse-based company, which
controls eight pct of the French industrial gas distribution
market, began on April 2 with an offer of 2,100 francs per
share from Union Carbide France <UK>.
    Aga's offer, which puts a price of 587 mln francs on the
company, closes on June 24 and the results will be announced on
July 21.
    Duffour et Igon shares were quoted yesterday at 4,410
francs, with no buyers, after a series of suspensions during
the takeover tussle. They traded at 856 francs on January 9
before the first suspension.
 REUTER
