Whirlpool Gets Up Close and Personal With Maytag

    July 27, 2005
    Chris Crum

There are three parties after the acquisition of Maytag – Ripplewood, Chian’s Haier Group, and Whirlpool. Maytag’s board of directors has been backing an offer made by Ripplewood.

But Friday, Whirlpool upped its offer from $17 a share to $18 a share. With the former offer already being higher than that of Ripplewood, Whirlpool was not prepared to give up.

Whirlpool Gets Up Close and Personal With Maytag

At $18 a share, the Maytag is looking at a $1.43 billion offer. Whirlpool has now gained access to Maytag’s financial books. According to MarketWatch,

Having apparently satisfied Maytag’s concerns about any prospective antitrust implications growing out of combining two major U.S. appliance makers, Whirlpool said it would immediately begin due diligence on its current $18-a-share offer.

Maytag (MYG: news, chart, profile) , having previously rebuffed a lower Whirlpool bid, has already set a shareholder vote Aug. 19 on a $1.1 billion, all-cash takeover offer from Ripplewood Holdings and its Triton Acquisition vehicle. The board of Maytag hasn’t wavered from its recommendation that shareholders approve Ripplewood’s $14-a-share bid.

“I expect that a deal is more likely as a result of this announcement,” said Morgan Keegan analyst Laura Champine regarding the announcement of Whirlpool’s access to Maytag’s books.

Shares of Whirlpool reached their highest ever on Monday at $82.80, but fell 59 cents today to $79.69. Maytag shares went up 6 cents to $16.91 according to MarketWatch data.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.