(Adds response from Airgas, updates stock prices.)
Air Products & Chemicals Inc. (APD) said it reached an
accord with the Federal Trade Commission on terms related to its
$5.31 billion hostile takeover bid for Airgas Inc. (ARG), and
extended the offer's deadline.
Air Products has been battling for months to acquire Airgas, one
of the largest U.S. distributors of industrial, medical and
specialty gases and related equipment. Airgas rejected the suitor's
latest offer of $63.50 a share, which was raised from $60 a
share.
The FTC consent decree would permit Air Products to acquire
Airgas as long as it sells assets related to Airgas' operations in
liquid bulk and on-site supply of atmospheric gasses. The agreement
allows Air Products to complete the takeover before completing the
divestitures.
Airgas responded Monday with a statement saying that the FTC
move was "widely anticipated" as it continued to bash the Air
Products offering, calling it "extremely opportunistic" and saying
it "does not fairly compensate Airgas stockholders." It encouraged
shareholders to oppose a slate of directors and bylaw revisions
that Air Products has proposed. Air Products' nominees to the board
include former Cargill Inc. Vice Chairman Robert Lumpkins and
former Maersk Inc. Chairman John Clancy.
Meanwhile, Air Products said it has extended the deadline for
its tender offer to Oct. 29. As of the prior deadline, which was
Friday, 23% of Airgas' shares were either owned by Air Products or
had been tendered, Air Products said. That compares with just
16,000 of Airgas' 83.7 million shares being tendered as of early
June, when the deadline was previously extended. Between then and
now, the takeover offer was raised.
Air Products shares were up 0.5% at $76.09 in recent trading
while Airgas gained 0.8% at $65.48.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com