A higher bid. With the way Maytag stock is reacting. It seems to me the arbs think the deal will pose antitrust concerns.
Whirlpool Raises Maytag Offer to $1.79B
Wednesday August 10, 5:13 pm ET
By David Pitt, AP Business Writer
Whirlpool Raises Maytag Offer for the Third Time, Now Bidding $1.79 Billion in Cash, Stock
DES MOINES, Iowa (AP) -- Whirlpool Corp. moved more aggressively Wednesday to clinch the deal to buy rival Maytag Corp. by raising its offer for a third time to $1.79 billion, or $21 a share.
Including the assumption of $977 million of Maytag debt, the entire deal was valued at $2.7 billion.
The latest offer, a $1-per-share premium to the sweetened bid of $1.62 billion that Whirlpool offered Monday, still consists of 50 percent cash and 50 percent Whirlpool stock. The deal also included a $120 million "reverse breakup" fee, which would be paid to Maytag if regulators do not approve the combination.
The latest offer, which expires on Aug. 21, represents a 50 percent premium to the initial bid of $14 per share, or about $1.13 billion, that Maytag received from investment group Triton Acquisition Holding Co. Maytag's board accepted the all-cash offer on May 19, and shareholders are scheduled to vote on it on Aug. 19.
Maytag rose 36 cents to close at $19 in trading on the New York Stock Exchange.
Benton Harbor, Mich.-based Whirlpool fell $1.49, or 1.8 percent, to $81.53.
Maytag spokesman John Daggett confirmed that the Newton, Iowa-based company had received the proposal but declined to comment further.
Industry analyst Laura Champine of Morgan Keegan & Co. said the Whirlpool offer comes at a time when the Triton group is preparing to increase its offer. Although the offer is expected to be considerably lower than Whirlpool's, Triton is likely trying to make the case that the Whirlpool-Maytag deal would not gain regulatory approval because of antitrust concerns.
Whirlpool is the biggest appliance maker in the U.S., while Maytag is third.
Champine said it is unclear how regulators will weigh in on the deal.
"It could go either way," she said.
Maytag has 48 hours to tentatively accept the offer, Champine said. Triton would have five days after that to increase its offer.
Triton spokesman Jeffrey Taufield declined to comment.
The Maytag board could decide to let shareholders vote on the Triton offer next week and proceed with the Whirlpool deal if shareholders vote Triton down.
Champine said shareholders are likely to decline the Triton offer with Whirlpool's better deal still on the table.
"If I were to try to handicap the outcome of the situation, my guess is that Whirlpool is successful in its efforts to acquire Maytag," she said.
On the Net: Maytag Corp.: maytagcorp.com
Whirlpool Corp.: whirlpoolcorp.com |
