Chloride rejects £723m bid

Steve Dinneen
Follow Steve
Chloride Group yesterday rejected a new £723m cash offer from suitor Emerson Electric.

It was urged by a string of major shareholders to hold out for a significantly higher bid from the US industrials group.

Emerson gave the power protection firm only two days to respond to its 275p-a-share cash proposal over the weekend before going public yesterday. It said its next step will 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 stadium, shot up by 43 per cent to an all-time high of 300p yesterday. The rise pushed the firm to the top of the FTSE 250 riser, suggesting the market expects a sweetened offer.

In 2008, Chloride rejected a 270p-a-share approach which it said undervalued the company.

Advising Emerson in its ongoing pursuit of Chloride is Brian Cassin of Greenhill.

Cassin joined Greenhill as co-head of European mergers and acquisitions in 1998. He previously worked for six years with Baring Brothers International in London and New York and four years with the London Stock Exchange.

Cassin advised property investment and development firm Minerva in its long-running negotiations with KiFin.

He again advised them through KiFin’s latest bid earlier this year, which the board said did not offer good value for the firm.

He was also involved in media firm DMGT’s agreement to sell Study Group International to funds advised by CHAMP private equity.

Advising from Greenhill’s New York office are Robert Greenhill and Jeff Buckalew.

JP Morgan Cazenove is also acting as financial adviser and corporate broker for Emerson.

Heading up the team are Mark Breuer and Dwayne Lysaght.