Suitor puts up £1bn to woo Chloride

The new proposal from Emerson Electric represents a 15 per cent increase on the previous deal agreed by Chloride with Zurich-based firm ABB.

Chloride, which helps firms to protect against power cuts, employs 2,300 people in 15 countries – 374 in the UK.

Emerson, based in St Louis, Missouri, tabled its first offer for Chloride in April – two years after it failed with a previous proposal. Its latest offer of 375p a share is based on it achieving 33m of savings from the tie-up.

The Chloride share prices rose again yesterday – by 11 per cent – as investors in the FTSE 250 Index company reaped benefits from the bid . The stock has doubled in value in three months to reach as high as 390p – last night it closed up 38.6p at 387.1p.

Numis Securities said the revised bid, valuing Chloride at 997m, was at a higher level than it thought Emerson would be prepared to offer.

ABB said it was considering its options and Chloride said it wanted to clarify aspects of the offer from Emerson before commenting.