Eaton withdraws from bid to acquire U.K.'s Domnick Hunter |
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Fri, 07 Oct 2005 00:35
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LONDON: U.S. manufacturing firm Eaton Corporation has withdrawn from the bid to acquire Britain's Domnick Hunter, the company that is into filtration and purification processes and has a successful range of products that offer protection against biochemical weapons. This leaves the field clear for U.S. rival Parker Hannifin, which announced a revised price of 700 pence for Domnick Hunter's share and left Eaton with no alternative.
The price is at a premium of more than 62.5 per cent to Domnick Hunter's share price.
Eaton issued a statement saying the company's board is convinced that the price offered by Parker Hannifin is in excess of the price which Eaton Industries is prepared to offer.
Eaton had earlier secured clearance from the Panel on Takeovers and Mergers for the buy-out, but it is now allowing the original offer of 690 pence in cash for a share to lapse.
Eaton had come in as an uninvited contestant disturbing an earlier agreed deal between Domnick Hunter and Parker Hannifin. It had
and increased its offer price twice. Parker Hannifin had given an original offer of 605 pence a share.
Domnick Hunter's filters are much in demand, as it has applications in breweries and in defence. Its products are known to offer protection against nuclear particles and against nerve agents such as Sarin and bacteria such as anthrax. The company has a staff strength of 1,900 worldwide and it had posted pre-tax profits of 12.8 million pounds last year.
The management team at the company will have a windfall, but there are clarifications from both the sides that key executives will continue to hold their posts after the takeover.
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Domnick Hunter in take over talks with two US firms 