BREAKING NEWS

BREAKING NEWS

Rockwell Automation rejects Emerson's $27 billion offer

Now Reading:

Rockwell Automation rejects Emerson's $27 billion offer

Text size Aa Aa

(Reuters) – Automation equipment maker Rockwell Automation Inc <ROK.N> said on Tuesday it had rejected another unsolicited acquisition bid from bigger rival Emerson Electric Co <EMR.N> for more than $27 billion (£20.4 billion) as the offer undervalued the company. Rockwell’s shares rose as much as 12.7 percent while Emerson’s shares fell as much as 4.1 percent. Milwaukee, Wisconsin-based Rockwell said it had previously rejected Emerson’s first buyout offer made on Aug.2 worth $200 per share, with about half of the consideration in cash and the rest in Emerson stock. On Oct.10, St. Louis, Missouri-based Emerson raised its cash and stock offer to $215 per share. But Rockwell’s board, after a careful review, rejected it, Rockwell said. Up to Monday’s close Rockwell’s shares had risen 13.2 percent, helped by improving sales in the United States and emerging markets. “A combination would provide increased scale and help expand industrial product and service offerings,” CFRA Research analyst Joe Agnese said. CNBC television on Tuesday was the first to report that Rockwell had rejected the multiple offers from Emerson. (http://cnb.cx/2zVEeUm) Emerson said it made a private offer to Rockwell, proposing a combination of the companies, adding that currently no discussions were ongoing between the two entities. Emerson is looking to expand in areas such as industrial automation amid increasing competition from European rivals such as Siemens <SIEGn.DE>, ABB Automation Group and Schneider Electric. Shares of Rockwell were up 5.3 percent at $197 while Emerson’s shares were down 3 percent at $65.35 in early trading on Tuesday.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.