Fire and Safety Products Supplier Kidde Agrees to UTC Takeover
HARTFORD, Conn.
United Technologies Corp. (UTC) announced that the Board of Directors for the U.K.-based Kidde Plc has unanimously recommended a cash takeover offer of $2.8 billion, or 165 U.K. pence per share. Kidde shareholders will receive a special dividend of two pence per share in lieu of a final dividend for the year.
According to Norman Askew, Kidde chairman, the deal represents a 35-percent premium to the company’s share price before the initial approach and a 67-percent premium over the share price a year ago. “Kidde’s business will benefit from being part of an organization as large as UTC, with the scale and financial resources to compete even more effectively than in the past,” says Askew.
“Kidde’s addition will further enhance UTC’s product portfolios,” adds George David, UTC chairman and CEO. “Kidde’s industrial fire protection and suppression products will further augment this presence.”
The first quarter of 2005 is the expected closing date for the transaction. The deal is subject to conditions including regulatory agency approvals and compliance with required filing and other regulations.
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