Kingspan still keen to acquire Metsec

Kingspan is believed to be still interested in acquiring the British insulation products company, Metsec, although sources say it may be forced to raise its original £31 million sterling bid made in late April.

The chairman and chief executive, Mr Eugene Murtagh, refused to comment yesterday at the company's annual general meeting on whether its bid for the British company is ongoing.

In early May, the board of Metsec ended negotiations with the Irish group which was looking to make an acquisition in conjunction with an unnamed third party.

But Mr Murtagh said that to comment on the possibility of the acquisition would not be helpful to the company. However, other sources said it was still "pursuing" the deal, although the Metsec board might be considering other options.

It is understood that Kingspan made an indicative offer of about 200p sterling a share in April, valuing Metsec at £31.2 million sterling. It is unclear how much above 200p Kingspan might be prepared to go.

Mr Murtagh, while not commenting on the Metsec bid, said the company hoped soon to announce a "bolt-on" acquisition worth about £8 million.

Mr Murtagh told shareholders that the performance for the first half of the year was ahead of the same period last year. He warned that new entrants to the composite panel market - including British Steel - might affect margins in the British market, where Kingspan currently has almost 90 per cent. "They are feeling their way into the market, but while we might drop a few percentage points we do not expect any decrease in terms of volumes," said Mr Murtagh. He added that the company was also developing a new composite panel product which uses advanced technology.