Chloride backs 1.5 bln dlr Emerson takeover bid
British power systems group Chloride said Friday that it was recommending shareholders to accept a 997-million-pound (1.228-billion-euro, 1.506-billion-dollar) takeover bid from US industrial technology company Emerson.
"The boards of directors of Emerson Electric Co. and Chloride Group PLC are pleased to announce that, following further discussions between them, the board of directors of Chloride has resolved that it intends unanimously to recommend acceptance of the cash offer announced by Emerson," Chloride said in a release.
The Chloride had revealed on Thursday that it would enter talks with Emerson after Swiss group ABB had pulled out of the bidding.
Earlier this week, Emerson had bid 375 pence per Chloride share, trumping an offer from Zurich-based ABB.
Chloride employs about 2,500 people and posted sales of 336 million pounds in the year ending March 31, 2010.
Chloride chief executive Tim Cobbold added: "Chloride and Emerson will represent a powerful combination in the global secure power market.
"The geographic reach of the two companies are complementary and Emerson intends that Chloride serves as its new European network power systems headquarters.
"We have a strong and experienced management team who will work closely with Emerson to fully realise the potential of the combined business."
© 2010 AFP