France: Lafarge's Olivier Guilluy has said that the company will not decide on a winning bid for its gypsum unit before September 2011. The business, reportedly valued at around Euro800m, has attracted around 10 serious bids from a variety of established gypsum wallboard producers and new players.
"In principle there will be no decision before the back-to-school season (in September)," said Guilluy. "A price has not yet been set for the division." In June 2010, local press reported that private equity funds, including Kohlberg Kravis Roberts & Co. and Carlyle, were in the running alongside industrial buyers including US-based Eagle Materials.Sources close to the situation have said the gypsum unit may be sold by geographic zone, split into Europe, North America and Asia, depending on whether antitrust rules complicate the sale or not.
Despite the high level of interest, Guilluy added that Lafarge may yet scrap the sale, depending on a decision to be made by its CEO Bruno Lafont. Guilluy said, "The unit generated about 9% of group sales in 2010, with revenue of Euro1.4bn and a current operating profit of Euro58m."
