ABB, Baldor again extend tender offer
by January 20, 2011 7:26 am 69 views
With a Department of Justice review still pending, executives at ABB and Baldor Electric Co. have again extended the share tender offer to Jan. 25.
Zurich, Switzerland-based ABB announced Nov. 29 the move to acquire Fort Smith-based Baldor in an all-cash $4.2 billion deal — $63.50 per share — expected to close in the first quarter of 2011. The Baldor board unanimously agreed to the deal, and ABB said it will keep the corporate operation in Fort Smith.
The tender offer was initially set to expire Jan. 10, but was extended to Jan. 19. As of Jan. 10, 86.38% of the shares outstanding had been tendered. As of Jan. 19, 88.8% of shares had been tendered.
On Dec. 21 it was learned that the Antitrust Division of the U.S. Department of Justice made a second request for documents related to the pending $4.2 billion deal. A statement from ABB and Baldor noted suggested the second request is not unusual and the DOJ will not raise antitrust issues. Authorities in Austria, Germany and Canada have cleared the transaction with respect to antitrust rules. Also, the Committee on Foreign Investment in the United States, a section of the U.S. Treasury, has approved the deal.
“ABB and Baldor believe the DOJ will conclude its review and clear the transaction shortly,” noted the Jan. 20 joint statement from ABB and Baldor.
The ABB Group is a global manufacturer of electric motors, drives, power system components, circuit breakers, switches and numerous other devices used in power and automation systems. The company operates in 100 countries and employs 117,000.
Baldor, a maker, designer and marketer of industrial electric motors, motor drives, power transmissions and generators, employs between 7,000 and 7,500 in 26 plants in five countries and sales offices serving more than 80 countries. About 2,000 are employed in the Fort Smith area.