("Air Products Raises Offer For Airgas,Threatens To Drop Effort"
published at 1:58 p.m. ET incorrectly stated in the sixth paragraph
the nature of the dispute to be settled in a Delaware court. The
correct version follows.)
DOW JONES NEWSWIRES
Air Products & Chemicals Inc. (APD) raised its takeover bid
for smaller rival Airgas Inc. (ARG) 6.9% to nearly $5.9 billion,
calling it its "best and final" offer as the nearly year-long saga
could be nearing a conclusion.
The offer price was raised to $70, but Airgas shares slumped
6.7% in recent trading to $61.55 as Air Products threatened to walk
away if a deal isn't reached soon. Air Products shares rose 2.3% to
$89.10.
An Airgas spokesman wasn't immediately available to comment on
Air Products' latest offer. But the company has repeatedly turned
down Air Products' approaches and told its suitor in November it
values itself at a minimum $78 a share. A merger of the two
Pennsylvania companies would create the largest industrial-gas
purveyor in North America by revenue, and one of the largest in the
world.
Airgas shares breached $70, Air Products' latest offer price, in
early November as investors have been anticipating Air Products
having to raise its offer again in order to cinch a deal.
Air Products Chairman and Chief Executive John E. McGlade said,
"It is time to bring this matter to a conclusion, and we are today
making our best and final offer for Airgas. The Air Products board
has determined that it is not in the best interests of Air Products
shareholders to pursue this transaction indefinitely, and Airgas
shareholders should be aware that Air Products will not pursue this
offer to another Airgas shareholder meeting, whenever it may be
held."
The two companies are embroiled in legal proceedings in a
Delaware court over whether Airgas's shareholder-rights plan,
commonly known as a poison pill, is valid.
Meanwhile, Air Product extended its tender offer a month to Jan.
14. As of the close of business Wednesday, 2.2 million of Airgas's
84 million shares had been tendered in support of the previous
$65.50 a share offer, up from 1.9 million as of Nov. 29.
Air Products first approached Airgas about a merger in October
2009. It then took its offer public early this year and launched a
hostile takeover battle in February.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com