Gamma held exploratory talks with Royal Ten Cate

Gamma Holding N.V. announces that for a number of days in March it conducted exploratory talks with Koninklijke Ten Cate N.V., at the latter's request, with a view to various forms of cooperation.

The talks came to nothing. After lengthy consideration the Supervisory Board and the Board of Managing Directors of Gamma decided not to accept the proposals made by Ten Cate. Ten Cate's ultimate objective was a complete merger of the two companies.

Gamma's reason for rejecting a complete merger with Ten Cate was - and remains - that the synergy benefits obtainable from the different units of the two enterprises are insufficient to justify a complete merger between Gamma and Ten Cate.

Gamma was, however, prepared to investigate whether collaboration between certain units of the two enterprises might be a possibility. "Our company made it a firm condition", said Mr J.G.M. van Oijen, chairman of Gamma's Board of Managing Directors, "that the possible synergy benefits which such cooperation might yield would have to be further investigated." Ten Cate then decided not to proceed with further talks.

Board of Managing Directors of Gamma Holding N.V.
Helmond, 4 May 2001