This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

United Technologies Makes Bid for Diebold

United Technologies (UTX - Get Report) Sunday announced it has made an unsolicited bid to acquire Diebold (DBD - Get Report) for $2.63 billion.

United Technologies, a Hartford, Conn.-based conglomerate whose businesses include Otis elevators, Carrier heating and air-conditioning systems and Pratt and Whitney airplane engines, said it wants to pay $40 a share in cash. That represents a 66% premium to Diebold's closing stock price on Friday of $24.12.

North Canton, Ohio-based Diebold makes automated teller machines, voting machines and security systems.

"Diebold represents an excellent fit with UTC, with its strong market position, U.S. footprint, and balance between product and service revenues," said George David, the CEO of United Technologies, in a press release announcing the bid. "In addition, Diebold will benefit from UTC's international presence and disciplined operating systems."

United Technologies said it decided to make its offer public after Diebold rejected its overtures.

United Technologies' CEO had tried for two years to negotiate a combination, according to correspondence between the two companies that was included in the press release. On Feb. 19, he sent a letter to John Lauer, his counterpart at Diebold, saying United Technologies wanted to acquire Diebold for cash at a significant premium to its recent stock price.

But Lauer wrote back on Feb. 21, saying Diebold's board had determined that it wasn't in the best interests of his company or its shareholders to pursue talks with United Technologies.

Shares of United Technologies closed Friday at $70.51.

This article was written by a staff member of TheStreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
DBD $33.72 0.00%
UTX $115.08 0.00%
AAPL $125.01 0.00%
FB $78.10 0.00%
GOOG $524.22 0.00%

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs