NEW YORK (AP) — Emerson Electric is withdrawing its latest unsolicited takeover bid for Rockwell Automation following a series of rejections from the industrial automation company.
Milwaukee-based Rockwell rejected the latest offer, saying that it undervalues the company and its prospects for growth.
Emerson’s latest offer stood at $225 per share, consisting of $135 per share in cash and $90 per share in Emerson stock. The total value was about $29 billion.
In October Rockwell Automation rejected an offer then worth $215 per share, or $27.61 billion. Emerson’s original bid of $200 per share was made in August.
Emerson Chairman and Chief Executive Officer David N. Farr stated, “The Rockwell Board again rejected our offer, which would have delivered approximately $30 billion of value to Rockwell shareholders. We are disappointed that the Rockwell Board refused even to discuss the potential combination of our two great companies. Instead of engaging in constructive dialogue, the Rockwell Board decided to let this unique and value-generative opportunity go unexplored.”
Rockwell today issued the following statement: “We thank our shareowners for their input and support, our employees for their focus and dedication, and our partners and customers for their continued confidence in Rockwell Automation throughout this process. The Rockwell Automation Board and management team are committed to the execution of our strategy, which we are confident will continue delivering extraordinary shareowner returns.”
Rockwell’s shares dropped nearly 2 percent in Tuesday premarket trading.
Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tagged with Emerson, Rockwell