Airgas Rejects Increased $5.5 Billion Bid from Air Products

Before you go, we thought you'd like these...
Before you go close icon

Airgas' (ARG) board of directors rejected an increased buyout bid of $65.50 a share, or $5.48 billion, from larger competitor Air Products & Chemicals (APD), noting that even after the bidding price had been sweetened, it still failed to account for the cost savings Air Products would realize by acquiring Airgas, as well as the share-price appreciation seen by other industrial gas companies over the past several months.

Air Products, which has a market value of about three times that of Airgas, started making unsolicited proposals to buy Airgas late last year. In February, it bid $60 a share for the company. Then, earlier this week, it raised its bid to $65.50 a share.

Sponsored Links

As Airgas' board pointed out in a letter to shareholders today, the share prices of three other industrial gas companies have risen an average of 18% since February, while Air Products' bidding price has risen just 9.2%.

The board unanimously rejected Air Products' bid while advising shareholders to vote for Airgas' directors and against an Air Products' bylaw amendment proposal at a Sept. 15 stockholder meeting.

Read Full Story

Markets

DJIA 20,775.60 32.60 0.16%
NASDAQ 5,860.63 -5.32 -0.09%
S&P 500 2,362.82 -2.56 -0.11%
DAX 11,998.59 31.10 0.26%
NIKKEI 225 19,331.92 -47.95 -0.25%
HANG SENG 24,086.65 -115.31 -0.48%
USD (per EUR) 1.06 0.00 0.12%
USD (per CHF) 1.01 0.00 -0.05%
JPY (per USD) 113.24 -0.17 -0.15%
GBP (per USD) 1.24 0.00 -0.05%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners