Nominees backed by Air Products & Chemicals Inc. (APD) won
all three board seats up for grabs at Airgas Inc.'s (ARG) annual
shareholder meeting, while proposed bylaw changes received majority
support but not the two-thirds support Airgas believes is necessary
for them to take effect.
The result means the seven-month battle regarding Airgas's
future will continue. Air Products in February went public in
February with its $5.1 billion takeover offer after being rebuffed
by Airgas. The offer has since been raised twice and currently sits
at $5.48 billion, or $65.50 a share.
Airgas still believes that price falls far short of the
company's value and said Wednesday in a statement disclosing the
vote results that the latest bid "grossly undervalues" the
company.
It added it was "disappointed with the outcome" of the vote.
Airgas shares were up 2.9% at $66.76 in recent trading while Air
Products was down 8 cents at $80.13.
An Air Products spokesman wasn't immediately available for
comment. But it had said it planned to walk away from the buyout
effort if Airgas holders didn't back its nominees and bylaw
proposals.
Airgas, the largest U.S. distributor of industrial, medical and
specialty gases believes that a two-thirds threshold was needed for
the bylaw changes proposed by Air Products under Delaware law. It
plans to seek a court ruling to that effect.
The biggest impact of the proposed bylaw changes would be
holding another annual meeting in January, at which another
one-third of Airgas's board spots would be up for a vote.
Air Products ran a three-person slate for Wednesday's meeting,
hoping that their election would result in a friendly takeover
deal.
Proxy advisers were split on whether Airgas holders should vote
for Air Products' nominees and bylaw proposals.
Over the weekend, financial advisers of both companies had
discussions trying to seek common ground. Air Products said it told
Airgas it was willing to negotiate a price, according to a filing
with the Securities and Exchange Commission. But Airgas said Air
Products didn't provide a revised offer over the weekend's
discussions.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; jodi.xu@dowjones.com