Emerson Withdraws Bid for UK Power Firm
June 4th, 2008 By: Rich Miller
Emerson Electric Co (EMR) has halted its efforts to acquire Britain’s Chloride Group (CHLD) after its latest improved takeover offer of $1.37 billion was rejected, the company said early Wednesday. Shares of Chloride, one of Europe’s leading providers of uninterruptible power supply (UPS) systems, fell 10 percent in trading on the London Stock Exchange.
Emerson, the parent of Emerson Network Power and its Liebert line of data center power and cooling products, made an initial acquisition offer of 255 pence a share on March 18. Chloride rejected that offer on May 12, and Emerson said today that its improved bid of 270 pence per Chloride share had also been rejected.
“Accordingly, Emerson confirms that it is no longer considering making an offer for Chloride,” it said.
Emerson Network Power (EMR) recently acquired Aperture, a leading provider of data center management software.
On Tuesday the management of Chloride had said it would consider a higher offer “if such a thing was to arise,” Finance Director Neil Warner told journalists. “However, in the short, medium and long- term our current focus is entirely on driving the business forward to derive shareholder value through our own means.”
Reports in the UK financial press have suggested Chloride would not consider a bid that values the business at less than 300p per share.