, Columnist
Emerson Gets Wild and Crazy on Rockwell
It promised discipline in pursuit of Rockwell, but is really starting to throw money around.
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So much for Emerson Electric Co. remaining "disciplined" on price when it comes to Rockwell Automation Inc.
Emerson upped its offer for the maker of assembly-line controls and software on Thursday to $225 a share, just over a week after CEO Dave Farr tried to soothe investors jolted by his previous pricey proposal of $215. Emerson also increased the percentage that would be paid in cash to about 60 percent from 50 percent, in an apparent recognition that its underperforming stock is a poor currency for holders of Rockwell's high-flying shares. We're increasingly approaching the point at which Rockwell has to take Emerson's interest seriously, but that also means we're entering valuation crazy-town.