Reuters
Maytag's shopping period to end
Friday June 17, 1:36 pm ET
NEW YORK (Reuters) - The 30-day period letting Maytag Corp. (MYG - News) shop itself to other interested parties ends at midnight on Friday, but rival offers could still scuttle the company's deal with Ripplewood Holdings LLC.
Ripplewood, a private equity firm, led a deal announced last month to buy Maytag for $14 a share. Ripplewood and a group of investors would pay $1.12 billion for the struggling appliance maker and assume $975 million in debt in a transaction expected to close by year end.
But speculation of a rival offer has swirled around the company, with Maytag's stock trading above Ripplewood's offer price ever since they announced the deal.
The Blackstone Group is among the private equity firms considering whether to bid for Maytag, according to sources familiar with the matter.
Haier Group, China's largest home appliance maker, said on Wednesday that it, too, may make a bid for Maytag. On Friday, the company remained undecided.
"We are paying great attention to events concerning the acquisition of Maytag, but have so far made no decisions yet," Haier said in a statement.
The Ripplewood offer comes as Maytag, a century-old American icon whose products include Maytag washing machines and Hoover vacuums, struggles with higher raw material costs, shrinking market share and competitors with lower labor costs. Among Maytag's rivals are South Korea's LG Electronics and U.S.-based Whirlpool Corp. (WHR - News).
Maytag's stock price fell by 54 percent from January through late April, touching a 52-week low of $9.23 on April 27. Rumors of an offer fueled the stock higher in May as well as suspected buying from nervous short sellers, betting the stock would fell.
When news of private equity and corporate interest in Maytag spread on Monday, the stock shot above $15.
On Friday, Maytag shares fell 3 percent to $14.89 by midday in New York Stock Exchange trading -- off a session high of $15.40.
According to a regulatory filing, after the June 18 deadline, Maytag can still entertain a bid deemed "more favorable from a financial point of view to the holders of company common stock than the merger" with Ripplewood.
biz.yahoo.com |
