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FAG board accepts INA`s increased offer

01 November, 2001

FAG and INA are to merge, creating the world`s second-largest bearings company, after FAG`s board decided to accept an increased offer from INA. Originally, the board rejected INA`s approach, but it has now agreed to an increased offer of €12 per share, that puts a 65% premium on the value of FAG shares before the offer was launched.

The European Commission has approved the merger, but the US Federal Trade Commission has not yet given its approval for the deal. INA does not expect the FTC to object because it says that less than 10% of the two companies businesses overlap.

INA has agreed that FAG will continue to manage its own affairs within the INA Group. INA has also given assurances that it does not intend to dispose of any FAG activities and that existing agreements with the FAG employees will be kept. FAG`s co-operation with Japan`s NTN will continue.

The merger will produce a group with a 52,000-strong workforce and sales of €6.5bn. Only SKF will have a larger bearings business.

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