Bridgestone Shares Rise on Back of Bandag Acquisition

Bridgestone shares rose three and a half per cent to 2,550 yen, the greatest gain in two months, after the tyremaker agreed to purchase retreaders Bandag Inc.

The US$1.05 billion dollar purchase will see Bridgestone gain a retreading presence in nearly a hundred countries through Bandag’s nine hundred plus dealerships, helping them to compete with the likes of Goodyear and Michelin.

Bandag shares changed hands for the cash price of US$50.75 per share after unanimous approval from the company’s Board of Directors. The transaction is expected to close in the late first or early second quarter of 2007.