In February, 2006 Lafarge S.A. announced a $75 per share cash tender offer for its subsidiary, Lafarge N.A. – the largest supplier of construction materials in North America – in a possible attempt to prevent an apparent takeover attempt by a Belgian firm. The board of directors at Lafarge NA recommended that shareholders accept what appeared to be an opportunistic, lowball offer.
Funds sponsored by CtW affiliates – including the International Brotherhood of Teamsters General Fund and the New Jersey Building Laborers Statewide Benefit Funds – believed the offer price was inadequate and that that board of Lafarge N.A. was not sufficiently independent of Lafarge S.A. to protect shareholders’ interests. Those funds communicated their concerns to the company, the SEC, and shareholders. Lafarge S.A. ultimately sweetened its bid to $85.50/share in order to consummate the tender offer.