ABB extends $4.2-bn takeover offer for Baldor Electric
11 Jan 2011
Swiss power and automation technology group ABB Ltd, yesterday extended its closing date for its $4.2-billion share tender offer period by nine days for US-based electrical motor maker Baldor Electric from 10 January to 19 January.
On 1 December, the $32-billion Swiss engineering group had offered to acquire Arkansas-based Baldor for $63.50 a share or $4.2 billion, including debt of $1.1 billion in its bid to emerge a global leader in industrial motor products. (See: ABB to acquire electrical motor maker Baldor Electric for $4.2 billion)
As on 10 January 2011, ABB said that 86.38 per cent of Baldor shareholders had tendered their shares.
Although the US regulator had raised anti-trust concerns, both companies have said that they were confident that the deal would be approved and expect the transaction to close in the first quarter of 2011.
The Austrian, German and Canadian regulators have already approved the deal.
Baldor is a leading supplier in the large North American industrial motors industry. It offers a broad range of mechanical power transmission products such as mounted bearings, enclosed gearing and couplings – used primarily in process industries – as well as drives and generators.