German chemicals company, Degussa, said that its management board supported a full takeover by mining company RAG and urged shareholders to accept an offer price of €42 per share.
The price is all the more significant as RAG is offering to buy E.ON AG's 43 per cent share to add to its own 50.1 per cent stake at a price below the price at which it normally trades.
Degussa said its board members who hold stock in the company plan to tender their shares as it seeks to thrash out the finer details of this deal that begun as early as 2003.
RAG began buying shares of Degussa in 2003 as Chief Executive Officer Werner Mueller implemented the company's strategic plan to reduce the company's reliance on coal in preparation for selling stock to the public.
In December, RAG exercised its right to buy the 43 per cent of Degussa owned by E.ON AG for 2.8 billion euros.
"The Management Board and Supervisory Board believe that RAG's offer price of €42 per share is reasonable," the company said in a statement.
"They are therefore convinced that the tender offer is in the interests of Degussa, in particular the Company's shareholders and employees, and they support the tender offer."