Heiton urges shareholders to reject Grafton move after talks break down

BUILDERS merchants and DIY group Heiton yesterday urged its shareholders to reject an approach from Grafton, the owners of the Woodie's DIY chain. The two companies broke off takeover talks earlier this week.

Grafton said yesterday that it valued Heiton at €325 million, or €6.35 per share, a 22% premium on the €5.20 level where Heiton shares traded yesterday.

Heiton directors later poured cold water on the approach in a statement to the stock exchange, saying the board "categorically rejected" the proposal and dismissing it as "a speculative attempt to take advantage of Heiton's future potential at the expense of its existing shareholders".