UPDATE 1-Carmeuse to buy Oglebay Norton for $36/shr

Fri Oct 12, 2007 1:01pm EDT

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Oct 12 (Reuters) - Carmeuse North America, a unit of Carmeuse Group, agreed to buy mining company Oglebay Norton OGBY.PK for $36 in cash.

The deal is valued at about $700 million, including debt, according to a news release on Carmeuse's Website. Based on the 14.4 million shares outstanding as of June 30, the cash component of the deal is about $520 million.

Carmeuse North America's offer price is 5 percent higher than company's Thursday closing price of $34.25.

The transaction is expected to close by the end of the year.

Oglebay said the special committee of Oglebay Norton's board has approved the merger and has unanimously recommended all shareholders of the company to vote in favor of the deal.

In September, the mining company had said it received multiple cash bids significantly above $31 a share, being offered by hedge fund Harbinger Capital.

Harbinger, while making its tender offer for Oglebay, said it was ready to provide the company with a 30-day provision to a explore higher bid.

Harbinger had later on said it did not wish to extend its tender offer for the company beyond Sept. 28.

JPMorgan is serving as lead financial advisor for Oglebay. (Reporting by Ramya Dilip in Bangalore)

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