Emerson Electric trumps ABB's bid for UK's Chloride with £997 million offer
29 Jun 2010
The battle for control of the UK-based Chloride, a provider of uninterruptible power supply equipment intensified yesterday after the US-based Emerson Electric Co raised its offer to £997 million, trumping an £860 million offer from Swiss group ABB.
Emerson hiked its April 2010 offer of 275 pence per Chloride share to 375 pence a share, valuing the group at £997 million, higher than ABB's offer of 325 pence a share or £860 million.
Early this month, Zurich-based power and automation technology group ABB had made an offer of £860 million for Chloride, setting up a potential bidding war with St. Louis, Missouri-based Emerson. (See: ABB sets up £860 million bidding battle for UK's Chloride with Emerson Electric)
Emerson took its offer directly to shareholders after Chloride rebuffed its earlier approach and accepted ABB's offer. Emerson has now offered 15 per cent or £137 million higher than ABB and has outlined annual operating cost savings of £33 million.
"We are today making what we believe to be a very attractive all-cash offer to Chloride shareholders, providing both an outstanding premium to Chloride's share price before Emerson announced its indicative proposal on 26 April 2010 and a significant premium to the recommended offer Chloride subsequently secured" from ABB, said Emerson's chief executive David Farr.
"As participants in the uninterruptible power supply (UPS) market, we believe there is a stronger rationale for a deal between Chloride and Emerson and, therefore, we think Emerson's offer merits approval by Chloride's Board and shareholders," it said.
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