Emerson Plans to Raise Its Hostile Offer for Chloride, Sunday Times Says
Emerson Electric Co., the U.S. electrical products maker seeking to acquire Chloride Group Plc, plans to raise its 275 pence ($3.97) a share offer after Emerson Chairman David Farr met with the U.K. company’s shareholders, the Sunday Times reported.
Some large investors won’t sell for less than 300 pence a share, and some analysts believe the price will go to 340 pence, the newspaper reported, without saying where it got the information.
Mark Polzin, a spokesman with St. Louis-based Emerson, declined to comment when contacted by Bloomberg. A Chloride spokesman didn’t immediately return a Bloomberg call seeking comment.
Emerson probably will prevail in its hostile takeover without a sweetened bid, according to Sterne, Agee & Leach Inc. analyst Nicholas Heymann. Heymann is the most-accurate analyst on Emerson in the past 12 months, according to data compiled by Bloomberg.
Farr has approached Chloride twice since 2008, with the latest offer in April valuing the London-based company at $1.05 billion.
Emerson fell $2.31, or 4.9 percent, to $44.97 in New York Stock Exchange composite trading on June 4 and has climbed 5.6 percent this year. Chloride rose 1.4 percent to 286 pence in London and is 59 percent higher so far this year.
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