Emerson Set to Acquire Chloride

Emerson Electric Co. (www.emerson.com), St. Louis, has apparently won a battle to acquire Chloride Group PLC (www.chloridepower.com), a London-based provider of uninterruptible power supplies.

Emerson and Chloride announced on July 1 that the board of directors of Chloride had resolved that it intended unanimously to recommend acceptance of a cash offer of 375 pence per Chloride share made by Emerson on June 29. This followed a July 1 statement issued by ABB Ltd. (www.abb.com), Zurich, that it had reviewed the June 29 Emerson offer, and that it had decided not to match Emerson’s offer.

Emerson’s June 29 cash offer for Chloride was valued at 997 million pounds ($1.5 billion). The Emerson offer topped ABB’s June 8 offer of about 860 million pounds ($1.3 billion), and came following Chloride’s rejection of an earlier offer by Emerson in April of about 723 million pounds ($1 billion).

The latest Emerson offer is being made by Rutherfurd Acquisitions Ltd, a wholly owned subsidiary of Emerson, and is to be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act of 2006. Chloride said the formal scheme document was to be posted to shareholders on or around July 16. A court meeting and general meeting of Chloride shareholders was scheduled for Aug. 9, and Chloride’s directors unanimously recommended that Chloride shareholders vote in favor of the resolutions to be proposed at these meetings.

Emerson Electric Co.
www.emerson.com

Chloride Group PLC
www.chloridepower.com

ABB Ltd.
www.abb.com

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