Standard Brands Paint, a leading do-it-yourself home decorating chain, Monday rejected an unsolicited $28-a-share bid from a New Zealand real estate and investment firm but left the door open for other offers.
In a statement, Stuart D. Buchalter, Standard Brands Paint chairman, said the $300-million offer from Chase Corp. of New Zealand was "inconsistent with the maximization of shareholder value." Standard Brands Paint said its directors were exploring several alternatives, including a friendly merger with another firm or a management buyout.
Joseph R. Glew, a Chase Corp. director, wasn't surprised by Standard Brands Paint's rejection. "It hasn't dampened our desire to take control of the company," he said.
Glew said Chase Corp. was also reviewing its options, including a hostile tender offer for Standard Brands Paint shares. Chase Corp. made its offer through its U.S. affiliate, Entregrowth International, which owns 4.8% of Standard Brands Paint's shares.