Report: Armstrong Leaning Toward Asset Sale

New York, NY, December 5, 2007--Armstrong World Industries, which announced in February that it would explore strategic alternatives, is leaning towards an asset sale to fund a share buyback, according to a the Financial Times, discussing a story from dealReporter.

According to the report, an announcement could come before the end of the year. While a buyback using the proceeds from an asset sale is one option being explored, it is also possible that no transaction will take place.

The report also indicated that it was unlikely the entire company would be sold.

According to a previous report by this news service, Armstrong’s ceiling business is the stronger part of the company and was seeing the most interest in the earlier days of the auction process. Meanwhile, the flooring business, which is more exposed to the residential construction market, is reportedly struggling.

Berkshire Hathaway had reportedly submitted an offer to acquire all of Armstrong, but the bid as too low.

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