Jul 31, 2012
By Bob Komsic
Rona is turning down on a $1.8-billion hostile takeover offer from Lowe’s.
The Montreal-area company says the offer from the second-largest home-improvement chain in the United States is not in shareholders’ best interest.
Lowe’s is relatively small in Canada with only about 16 stores and about 28-hundred employees.
By contrast, Rona has more than 30-thousand employees operating nearly 800 stores.
Lowe’s says it’s seeking friendly talks, adding 15 per cent of Rona shareholders like the offer of $14.50 a share.