Emerson Offers $1.5 Billion for Chloride to Unravel ABB Accord
June 29 (Bloomberg) -- Emerson Electric Co. offered to buy Chloride Group Plc for 997 million pounds ($1.5 billion) in an effort to derail ABB Ltd.’s planned takeover of Britain’s biggest maker of gear to protect against power outages.
Under the terms of the offer, Chloride shareholders would receive 375 pence a share, Emerson said in a statement today. That’s 15 percent higher than ABB’s 325 pence-a-share bid, announced June 8 and accepted by Chloride.
Emerson took its offer directly to shareholders after management at the British company spurned prior approaches. The U.S. company has outlined annual operating-cost savings of at least 33 million pounds through purchasing and manufacturing efficiencies as well as the reduction of workers and facilities.
“The unique combination of Chloride with the expanded offerings of Emerson Network Power will allow it to provide unparalleled product services and solutions,” Emerson Chairman David Farr said in the statement. “In light of the offer price and notwithstanding the statement contained in the announcement of the indicative proposal, Emerson can no longer be certain that a combination with Chloride will result in a net addition of skilled jobs in the U.K.”
source: bloomberg.com
No comments:
Post a Comment