United Technologies Makes Bid for Diebold
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV