UK's Chloride accepts Emerson's takeover bid

[July 02, 2010]  LONDON (AP) -- British power supply company Chloride Group said Friday that it has accepted an improved takeover bid from U.S. competitor Emerson Electric Co. that values it at 997 million pounds ($1.5 billion).

Chloride said its board unanimously recommended that shareholders accept Emerson's offer of 375 pence per share.

Emerson clinched the deal after Swiss company ABB Ltd., which had offered 325 pence per share, said on Thursday that it would not match Emerson's offer.

Chloride's board had previously backed ABB's offer.

"Chloride is an excellent business with a strong strategic position in an attractive growth market," said Norman Broadhurst, Chloride's chairman.

"The Emerson offer reflects these qualities, our expertise and the group's potential. Consequently, the board believes it is in the best interests of shareholders to recommend Emerson's offer."

Emerson, based in St. Louis, had offered 255 pence per share in April, an offer which Chloride rebuffed.

Besides its cash offer for shares, Emerson said Chloride shareholders would also receive a final dividend of 3.3 pence per share for the year ending March 31.

Emerson said it had already identified annual savings of 33 million pounds from the proposed takeover.

David N. Farr, CEO and president of Emerson, said earlier this week that the two companies' geographic reach and product offerings for the uninterruptible power supply market are "highly complementary."

[Associated Press]

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