Diebold rejects United Technologies bid

Source: Manufacturing Digital

Date :3/4/2008 1:47:52 AM

Diebold Inc., said Monday, that its board has unanimously rejected United Technologies Corp.'s $2.63 billion acquisition offer because it is too low and the timing is wrong.

United Technologies, maker of Otis elevators and Chubb security systems, said Sunday that it offered to buy Diebold, the nation's biggest maker of automated teller machines, for $40 a share, a 66 percent premium over the stock's closing price of $24.12 on Friday.

Buyout offer

"The board strongly believes that UTC's proposal significantly undervalues the company and fails to reflect Diebold's strengths and significant upside potential," said John N. Lauer, non-executive chairman of the board for Diebold.

"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,” he said.

March 04, 2008