ABB says Baldor Electric offer a success
Swedish-Swiss engineering giant ABB said Wednesday its $4.2 billion offer to buy US industrial electric motor group Baldor Electric had succeeded, and that it was expecting double-digit growth in its fourth quarter operating income.
The Zurich-based group said that following the Tuesday closing of the offer it had received 89.4 percent of Baldor's shares.
It would acquire the remaining shares at $63.50 per share and de-list the company from Wall Street, it added.
US competition authorities green-lighted the takeover last week, and the management of both groups have approved the transaction.
Arkansas-based Baldor employs about 7,000 people and reported an operating profit of $184 million in the first nine months of 2010.
ABB plans to integrate Baldor into its motors and generators business, a move which it has said would bring about savings of $200 million annually by 2015.
ABB, which is to publish its earnings results on February 17, said it expected double-digit growth in its fourth-quarter operating income as well as double-digit growth in orders in local currency terms.
© 2011 AFP