- Dubai Struggles to Ease Debt Fears; Investors Rattled
- US Companies Already Moving on Curbing Emissions
- Fannie Mae to Tighten Lending Standards: Report
- Investing in Good Karma – and Making a Profit
- Retailers Should Believe in Christmas Miracles
- Wal-Mart Price Pressure Hurts China Workers: Report
- Bankruptcies Jump, Hitting Highest Level in Four Years
- Steepest Black Friday Discounts, Revealed
- Where Do Pardoned Turkeys Go?
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- Gold Retreats from Record High as Dollar Rebounds
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Chinese Overcapacity is Worsening, EU Chamber Warns
- Wal-Mart Price Pressure Hurts China Workers: Report
- Fannie Mae to Tighten Lending Standards: Report
- Great Britain, No Longer That Great: Investor
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Euro Shares Record Biggest Drop in 7 Months
Text Size 
Diebold said Monday its board has rejected an unsolicited $2.64 million takeover offer by diversified U.S. manufacturer United Technologies.
 |
"UTC's proposal is an opportunistic attempt to buy Diebold at a time when shareholders do not have sufficient data to evaluate the offer and as such, the board believes that it would be irresponsible to engage in discussions with UTC at this time," said John Lauer, Diebold's non-executive chairman, in a statement.
North Canton, Ohio-based Diebold has been under scrutiny by the U.S. Securities and Exchange Commission for its revenue recognition policies and in January said it would be restating its financial results for 2003 through 2006. It has not filed financial statements with the SEC since March 31, 2007.
Diebold [DBD
Loading...
()
] shares were up 59 percent to $38.28 in afternoon trading on the New York Stock Exchange. At Friday's market close, the stock had lost more than half its value since hitting a peak of $54.50 in August.
United Tech [UTX
Loading...
()
] shares were down 1.9 percent to $69.16.
When it disclosed the offer, United Technologies said it had studied Diebold for several years, but had been rebuffed on a prior approach.
"We should view this approach as a ploy to force (Diebold) to the negotiating table," Deutsche Bank analyst Nigel Coe wrote in a note to clients.
UBS analyst David Bleustein wrote: "Given the hostile nature of the proposed transaction, we believe other global industrials with interests in related industrial markets, including either the elevator or fire/security spaces, may give the transaction a look."
A deal would mark United Tech's entry into the ATM business, but Diebold's global footprint -- with strong positions in India, China and Russia -- is similar to United Tech's presence in its other industries, analysts said.
Goldman Sachs analyst Deane Dray wrote in a note to clients that United Tech's offer appeared reasonable, based on Diebold's revenue.
Analysts expect Diebold to record revenue of $2.93 billion for 2007 and $3.1 billion for 2008, according to Reuters Estimates.
Based on Diebold's roughly 66 million shares as of May 7, the deal would be worth $2.64 billion.
Hartford, Connecticut-based United Tech, the world's largest maker of elevators and air conditioners, said it still expected to post profit per share of $4.65 to $4.85 this year.
Analysts on average have forecast $4.86, according to Reuters Estimates.
Print
Email
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
- Ever wished your cab driver would stop nattering and just get to where you're going? Well that moment is near(er).
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
Data is a real-time snapshot *Data is delayed at least 15 minutes