NSG/Pilkington Floating away

Pilkington did not resist too hard. The UK glassmaker rebuffed Nippon Sheet Glass when it approached with a 150p per share offer in November 2005. But four months of negotiation and a 10% higher offer was enough to win it over. So for £2.2 billion, Pilkington is set to be absorbed by its much smaller Japanese competitor. From the perspective of Pilkington’s shareholders, it is hard to argue with the price. At 16 times expected earnings for 2006, it is 45% more than the undisturbed price. The i...