As merger drags, Saint-Gobain stake sold at a loss

Wendel, the France-based investment group that owns Conshohocken security-guard giant AlliedBarton, among other companies, has dumped nearly half its 12 percent stake in Saint-Gobain, the French building-materials group whose U.S. headquarters is in Malvern, at a loss of more than $500 million.

The loss comes as Saint-Gobain pursues a long, hostile takeover battle to buy Swiss rival Sika AG, in a deal supported by Sika's founding Burkard family but opposed by most of its board.

Wendel in a statement claimed it had "full confidence" in Saint-Gobain. Wendel chairman Frederick Lemoine said the sale would allow his company to make more profitable investments elsewhere.

Saint-Gobain chairman Pierre-Andre de Chandelar said his company would spend over $400 million buying back one-third of the shares Wendel is unloading and called Wendel's willingness to hold onto the 6.3 percent of Saint-Gobain that it isn't dumping as a vote of confidence in Saint-Gobain's direction and its campaign to buy Sika.