Chloride says no to fresh approach

Chloride has rejected a new £723m approach from former suitor Emerson Electric and was urged by major shareholders to hold out for a much higher bid from the US industrials group this time around.

By The Newsroom

Published 27th Apr 2010, 12:54 BST

Updated 27th Apr 2010, 12:54 BST

Emerson gave the power protection firm only two days to respond to its 275-pence-a-share cash proposal over the weekend before going public yesterday, and said its next steps would be to contact Chloride's institutional shareholders.

Shares in Chloride, whose products protect against power shortages at Heathrow's Terminal 5 and Arsenal's Emirates football stadium, shot up by 43 per cent to an all-time high of 300p.

Two top 10 shareholders said Chloride's management was right to rebuff the approach and said Chloride's European footprint, coupled with high barriers to entry in the industry, meant Emerson should offer significantly more.

Emerson talked to Chloride in 2008 about an offer, but those talks broke down.

Heathrow Emirates