Events Calendar
In This Section
9 students, car driver injured slightly in crash with school bus
Summit County distributes grants for utility bills
Ohio home sales rise in October
Woman's purse snatched after beer purchase
Akron Circle K store robbed for second time this month
Kent city, university police investigating two robberies
Third suspect arrested in Akron market robbery
Kangaroo tries to drown dog, attacks owner
Most Read Stories
Police accuse bank robbery suspect of gobbling up note (with dashcam video)
Victim of beating in Kent last week is declared dead at Akron hospital
Akron man killed in crash on his street
Browns find another way to lose
Can DNA tests free ex-Akron captain?
Dad accused of forcing son into field, killing him
Man found dead in North Akron home is identified
After 30 years at the helm of Akron Children's, Considine still looks to future
City, county may ban bias based on sexual orientation
Calling hours today for Stefanie Spielman
Blogs:
Pets:
Cat-loving chihuahua suckles seven abandoned kittens
The Heldenfiles:
Sunday Notebook
Patrick McManamon:
Browns sick after sick loss in Detroit
Akron Zips:
Zips advance to Sweet Sixteen
Tribe Matters:
Seven players added to Tribe’s 40-man roster
Cleveland Browns:
Post-game defensive quotes
Kent State Sports:
Kent State defeats Rochester College, 63-44
Cleveland Cavaliers:
Gameblog: Cavs vs. Philadelphia 76ers
Buckeye Blogging:
OSU – Michigan college football rivals meet in Baghdad
Varsity Letters:
Four area football teams play tonight
All Da King's Men:
The Onion, By Any Other Name…
Blog of Mass Destruction:
Will Health Care Reform Pass?
Akron Law Café:
Health Care Financing Reform: (70) Savings in Medicare Advantage
See Jane Style:
Vintage Chic
Car Chase:
TIME TO GET YOUR COLLECTOR CARS WINTERIZED
Let's Talk Real Estate:
Faye Dunaway to be Evicted?
Ohio Travels with Betty:
Monique asks how to get tickets for the Polar Express.
Sound Check:
Steely Dan Plays "The Royal Scam" at E.J. Thomas Hall
HRLite House:
Personal Rant – You are All Wrong About Jobs, or the Lack of Jobs, Being the Reason People Do Not Live in NEO
Akron Gamer:
Nintendo's Mario endures even as games come and go
By Jim Mackinnon/Beacon Journal business writer
POSTED: 11:40 a.m. EST, Mar 05, 2008
Diebold Inc. this morning released a letter from its chairman to United Technologies that calls the Connecticut company's $40-a-share buyout offer ''opportunistic'' and ''inadequate.''
The letter also said that United Technologies has mischaracterized the history of discussions between the two companies and that the company previously had never made a firm offer for Diebold.
Diversified conglomerate United Technologies on Sunday revealed that it was offering $2.6 billion, or $40 a share, for Diebold, the Green maker of automated teller machines and electronic voting machines. The disclosure sent Diebold stock soaring up 61 percent on Monday from Friday's closing price of $24.12.
But Diebold quickly responded Monday that it had rejected United Technologies offer.
Wednesday's letter clarified Diebold's position.
''Your $40-per-share offer is 27 percent below Diebold's 52-week high of $54.50 reached only seven months ago. Moreover, your offer is an opportunistic attempt to acquire Diebold at an inadequate price that does not reflect significant progress against our current strategic initiatives,'' Diebold Chairman John N. Lauer wrote. ''Simply put, (United Technologies') proposed offer is far below what Diebold is worth. Furthermore, your overture, which comes at a time when we cannot responsibly engage in discussions, and the hostile nature of your approach, has convinced the (Diebold) board that discussions now will not likely result in the best outcome for our shareholders.''
The letter said that because Diebold is in the process of revamping its financial statements (as part of an SEC investigation into former accounting practices), shareholders have no basis on which to evaluate the United Technologies bid.
Lauer's letter also said United Technologies mischaracterized contact between the two companies over the past two years.
''Prior to your letter dated February 29, 2008, (United Technologies) had never made a firm proposal to acquire Diebold,'' Lauer wrote. ''In fact, (United Technologies) approached Diebold on only two occasions with non-specific inquiries — first a brief, informal conversation that took place roughly two years ago between an investment banker (who did not identify his client) and a Diebold board member; and second, your letter dated February 19, 2008, which referenced a vague proposal without any specific price. Two points of contact separated by two years does not, in our opinion, represent 'constructive discussions to increase shareholder value' as you have publicly stated.''
Diebold shares were up 18 cents to $37.86 as of 11:03 a.m.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Diebold Inc. this morning released a letter from its chairman to United Technologies that calls the Connecticut company's $40-a-share buyout offer ''opportunistic'' and ''inadequate.''
The letter also said that United Technologies has mischaracterized the history of discussions between the two companies and that the company previously had never made a firm offer for Diebold.
Diversified conglomerate United Technologies on Sunday revealed that it was offering $2.6 billion, or $40 a share, for Diebold, the Green maker of automated teller machines and electronic voting machines. The disclosure sent Diebold stock soaring up 61 percent on Monday from Friday's closing price of $24.12.
But Diebold quickly responded Monday that it had rejected United Technologies offer.
Wednesday's letter clarified Diebold's position.
''Your $40-per-share offer is 27 percent below Diebold's 52-week high of $54.50 reached only seven months ago. Moreover, your offer is an opportunistic attempt to acquire Diebold at an inadequate price that does not reflect significant progress against our current strategic initiatives,'' Diebold Chairman John N. Lauer wrote. ''Simply put, (United Technologies') proposed offer is far below what Diebold is worth. Furthermore, your overture, which comes at a time when we cannot responsibly engage in discussions, and the hostile nature of your approach, has convinced the (Diebold) board that discussions now will not likely result in the best outcome for our shareholders.''
The letter said that because Diebold is in the process of revamping its financial statements (as part of an SEC investigation into former accounting practices), shareholders have no basis on which to evaluate the United Technologies bid.
Lauer's letter also said United Technologies mischaracterized contact between the two companies over the past two years.
''Prior to your letter dated February 29, 2008, (United Technologies) had never made a firm proposal to acquire Diebold,'' Lauer wrote. ''In fact, (United Technologies) approached Diebold on only two occasions with non-specific inquiries — first a brief, informal conversation that took place roughly two years ago between an investment banker (who did not identify his client) and a Diebold board member; and second, your letter dated February 19, 2008, which referenced a vague proposal without any specific price. Two points of contact separated by two years does not, in our opinion, represent 'constructive discussions to increase shareholder value' as you have publicly stated.''
Diebold shares were up 18 cents to $37.86 as of 11:03 a.m.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Comments
Click here to post your comments
