* Elementis says proposal undervalues co
* Proposal values Elementis at 621.5 mln stg
* Mineral Technologies considering position on possible
proposal
(Updates shares, adds Elementis and analyst comment,
background)
Nov 12 (Reuters) - British specialty chemicals firm
Elementis said on Thursday it had rejected an all-cash
buyout offer from larger rival Minerals Technologies, as
the 621.5 million pounds ($819 million) valuation for the
company was too low.
Shares in Elementis rose 7.7% to 105.5 pence by 1028 GMT,
below the 107 pence per share offer.
Elementis' board unanimously rejected the proposal, saying
it significantly undervalued the company and its future
prospects.
Founded in 1844, the British company makes additives that go
into products in the consumer and industrial markets, including
personal care, coatings, chromium, energy and talc.
It said last month earlier it had a robust order book for
November and that it was on track to deliver a significant
reduction in net debt by the end of the year.
New York-based Mineral Technologies, which approached
Elementis earlier in the month, said it was currently
considering its position on a possible proposal for the British
firm.
The proposal highlighted the fact shares in Elementis, which
have fallen around 47% so far this year, have been cheap,
according to Jefferies analysts.
The offer represented a premium of 31% to Elementis' closing
share price of 81.70 pence on Nov. 4.
Elementis has 580.8 million shares in issue, according to
its website.
($1 = 0.7588 pounds)
(Reporting by Samantha Machado and Tanishaa Nadkar in
Bengaluru; Editing by Saumyadeb Chakrabarty)