Chloride says will enter takeover talks with Emerson

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British power systems group Chloride said on Thursday it will enter into takeover talks with US industrial technology company Emerson, after Swiss group ABB pulled out of the bidding.

Earlier this week, Emerson had bid 375 pence per Chloride share, valuing the British group at 997 million pounds (1.228 billion euros, 1.506 billion dollars), trumping an offer from ABB.

The Swiss company announced in Zurich on Thursday that it had decided to abandon its takeover attempt.

"The board of Chloride notes the announcement this morning by ABB," Chloride said in a brief statement.

"In light of this announcement, the board of Chloride intends to enter into discussions with Emerson Electric Co. with respect to its offer for Chloride."

The power systems firm added that a further statement would be made in due course.

Chloride employs about 2,500 people and posted sales of 336 million pounds in the year ending March 31, 2010.

© 2010 AFP

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