Emerson Electric Co. (EMR) said Friday it has bought a 19% stake
of U.K.-based Chloride Group PLC (CHLD.LN) on the open market as
the other suitor for the company dropped out of the running.
Emerson's announcement came hours after Chloride said its board
would recommend shareholders accept Emerson's offer of 375 pence a
share, or $1.5 billion in total. The latest offer, made Tuesday,
trumped a prior $1.2 billion offer from Swiss engineering giant ABB
Ltd. (ABB), a bid which had the support of Chloride's board. But
ABB pulled its offer Thursday.
Chloride is a maker of uninterruptible power supply systems that
provide emergency power when the normal power source fails.
St. Louis-based Emerson, which makes electrical products and
appliances, said in May its fiscal second-quarter profit rose on
stronger margins while organic sales fell.
Shares declined 0.4% in recent trading to $43.29. The stock has
risen 36% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;