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Milwaukee-based Rockwell said its board of directors was
unanimous in concluding that Emerson's latest offer — about $2
billion higher than a previous proposal — was "not in best
interests of the company and its shareowners."
Earlier this month, Emerson outlined a plan for a combined
"Emerson Rockwell" that will maintain a significant presence in
Milwaukee and become an "automation center of excellence."
Rockwell on Wednesday questioned the strategic rationale for a
merger.
A combination with Emerson would "dampen, not enhance, the
ability to grow in the evolving industrial automation and
information market," Rockwell Chief Executive Blake Moret said.
"Bigger is not always better for driving growth and value
creation," Moret added.
Rockwell is a leader in so-called discrete automation, helping
assemble component parts to make automobiles, household
appliances and computer systems.
Emerson's strength is in process automation, which helps power
plants and factories in sectors including mining and cement
operate more efficiently.
St. Louis-based Emerson's latest offer values Rockwell at $225
per share, split between $135 in cash and $90 in Emerson shares.
Shares of Rockwell fell 1.2 percent to $191 in premarket trading
on Wednesday, with Emerson shares were slightly higher.
(Reporting by Sanjana Shivdas; editing by Sai Sachin Ravikumar)
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