Industrial-gas company Air Products & Chemicals (APD) stands
ready to divest assets and launch a proxy fight to succeed with its
unsolicited $5.1 billion bid to acquire rival Airgas Inc. (ARG),
Air Products Chief Financial Officer Paul Huck said Friday.
"Ultimately, if needed, we are prepared to launch a proxy
contest as the final step" to getting the transaction done, Huck
said during a conference call following the announcement of the
bid, according to a transcript of the call. "This deal has
tremendous strategic and industrial logic."
The Lehigh Valley, Pa., company is also prepared to make "the
appropriate divestitures to gain regulatory approval," Huck
said.
A proxy fight happens when a buyer seeks to convince
shareholders to replace the reluctant management of a take-over
target for managers open to the acquisition. Airgas management has
turned down previous offers, but it said Friday its board will
review the proposal.
Huck also said Air Products intends to continue Airgas' strategy
of expansion by acquisitions and its focus on local customers, and
that maintaining "the entrepreneurship and agility of the
organization at this local level is key."
Air Products executives also said they own about 1 million
shares of Airgas stock.
Airgas shares are up $17.40, or 40%, at $60.93 while Air
Products stock has fallen $4.99, or 6.8%, to $68.68.
-By Angel Gonzalez, Dow Jones Newswires; 713-547-9214;
angel.gonzalez@dowjones.com