Saint-Gobain SA, Europe's biggest supplier of building materials, has rebuffed approaches from buyout firms for its packaging unit in favor of an initial public offering, four people familiar with the situation said. Private equity firms including a group formed by TPG Capital, Blackstone Group LP & Axa Private Equity have renewed interest in conducting due diligence & making an offer, said the people, who declined to be identified as talks were private. Saint-Gobain is considering the IPO option only, they said. French-based Saint-Gobain may sell a minority stake in Verallia, which makes beverage bottles & food jars, in an IPO this year, the company said October/10. CEO Pierre-Andre de Chalendar postponed an attempt to sell the unit because of the onset of the financial crisis in 2008. A share sale may value Verallia at more than 4BN euros ($5.4BN), two of the people said. Listing the unit isn't a completely satisfactory solution because they will have to offer a discount of between 10-15%, said Sven Edelfelt, a Paris-based Aurel-BGC analyst. Saint-Gobain's listing of Verallia could go ahead from the second quarter,market conditions permitting, said company spokeswoman Sophie Chevallon. She declined to comment on potential suitors.
