Utc Bid Rejected By Kidde Plc
UTC has previously approached Kidde with a formal proposal for a cash offer for the entire share capital of Kidde, most recently at a price of up to 160p and subject to due diligence. This approach was rebuffed and UTC’s request for satisfactory due diligence denied. UTC is considering whether to proceed with an offer and intends to meet with shareholders in order to seek their support for satisfactory due diligence access.
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UTC currently holds 21.875 million shares (2.6 percent) of Kidde. At this time there can be no certainty as to whether an offer will be made or the value of any offer. A new offer would certainly be subject to customary terms and conditions, including a further Hart-Scott-Rodino filing.
UTC said last week that it had received clearance to acquire up to 30 percent of the ordinary shares of Kidde plc under the Hart-Scott-Rodino rules in the <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />United States.
Meanwhile, despite turning UTC down, Kidde indicated it was open to a higher offer but it’s counter proposal was rejected in turn by UTC. Kidde’s proposal was based upon United Technologies agreeing to a price that was unacceptable, said Paul Jackson, a spokesman for United Technologies. Kidde also would not allow United Technologies a satisfactory examination of the company’s financial records, he said.
Kidde provides fire and safety products, systems and services for industries that overlap with United Technologies’ aerospace, defense, industrial, commercial and consumer markets. The products include detection, protection, prevention and fire fighting.
Shares of United Technologies fell 4 cents to close at $91 Friday on the New York Stock Exchange. Kidde shares rose 17.2 percent to close at 170 pence, above ($3.10), above the high end of what was being offered, on London’s Stock Exchange.