Emerson announces higher bid for Chloride

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US industrial technology company Emerson on Tuesday raised its offer to buy British power systems group Chloride to almost one billion pounds, trumping a rival bid from Swiss group ABB.

Emerson bid 375 pence per Chloride share, valuing the British group at 997 million pounds (1.228 billion euros, 1.506 billion dollars), it said in a statement.

Emerson's offer is higher than ABB's offer of 325 pence a share and 100 pence higher than the US group's original bid of 275 pence a share.

"We are today making what we believe to be a very attractive all-cash offer to Chloride shareholders, providing both an outstanding premium to Chloride's share price before Emerson announced its indicative proposal on 26 April 2010 and a significant premium to the recommended offer Chloride subsequently secured" from ABB, said Emerson's chief executive David N. Farr.

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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