Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Emerson Electric    EMR

EMERSON ELECTRIC (EMR)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Emerson Electric : Equipment Maker Rejects New Offer From Emerson -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/01/2017 | 07:48am CEST

Rockwell rejects Emerson's latest offer of $215 a share; 'We really don' t need them'

By Andrew Tangel, Dana Cimilluca and Bob Tita 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 1, 2017).

Rockwell Automation Inc. has rejected a takeover bid by Emerson Electric Co. worth roughly $27.5 billion, spurning a deal that would have combined two big U.S. makers of machines and software used in manufacturing.

The latest half-cash, half-stock bid by Emerson, a St. Louis-based industrial conglomerate, came in early October and was valued at $215 a share, according to Rockwell. The Milwaukee-based maker of industrial equipment said it also rejected an earlier Emerson bid in August valued at $200 a share.

Rockwell Chief Executive Blake Moret said in a statement the company's board and management are committed to serving the best interests of the company and shareholders and were "confident in the company's strategic direction and our ability to continue delivering superior levels of growth and value creation."

An Emerson spokesman on Tuesday confirmed the company's attempt to acquire Rockwell but declined to comment further.

Rockwell shares surged on news of Emerson's bids, which had been earlier reported by CNBC. Rockwell shares were up more than 8% to $202.71 in midday trading Tuesday. Emerson's stock was down 2.6%, suggesting its shareholders are less enthusiastic about a potential deal.

It wasn't immediately clear what might be Emerson's next step. Now that the bids have become public, Rockwell may feel shareholder pressure to engage in negotiations about a potential combination.

Rockwell was skeptical of the large amount of Emerson's stock, according to people familiar with the matter. It also has concerns about Emerson's management and its record with mergers and acquisitions, the people said.

One of these people described Rockwell's view of Emerson's bid as: "They need us. We really don't really need them."

Emerson estimates $6 billion of synergies from the potential deal, another person familiar with the matter said.

Should Emerson eventually succeed in its attempt to take over Rockwell, which is far from guaranteed, the combined company would have a "center of excellence" in Milwaukee and include Rockwell's name, this person added.

Both companies specialize in making products used in the manufacturing process, but with specialties in different sectors.

Emerson's automation business is largely focused on chemicals, cement, oil and natural-gas installations and other materials produced in outdoor facilities. Its business portfolio also includes hardware such as industrial valves and kitchen garbage disposals.

Rockwell has generally focused on developing equipment and software used to make products such as cars, electronics and food. Rockwell has increasingly been focused on what it calls the "connected enterprise," using software to link manufacturing to data across a company's operations.

"It's a different expertise," said Longbow Research analyst Chris Dankert. "This would give Emerson a much broader portfolio."

William Blair analyst Nicholas Heymann said the acquisition attempt highlights how Rockwell's software and data-analytics focus are becoming increasingly valuable "as manufacturing shifts from electromechanical to digital."

Rumors of Emerson's interest in Rockwell have circulated on Wall Street for several years. While analysts have viewed Rockwell as a solid fit with Emerson's industrial control line, Rockwell executives have shown little interest in selling.

Emerson, which supplied factory automation gear in some of the same markets as Rockwell, has been revamping its business portfolio in recent years. The company sold units that accounted for several billion dollars a year in sales to eliminate slower-growing or lower-margin businesses. Emerson sold its struggling network power business, which provided backup power equipment to server centers, to Platinum Equity for about $4 billion. It sold its motors and power-generation unit to Japan's Nidec for $1.2 billion.

Emerson CEO David Farr has pledged to replace the lost revenue with acquisitions. The company earlier this year completed the purchase of Pentair PLC's industrial valves-and-controls business for $3.15 billion.

Write to Andrew Tangel at [email protected], Dana Cimilluca at [email protected] and Bob Tita at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
ROCKWELL AUTOMATION -0.96% 172.83 Delayed Quote.-11.13%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on EMERSON ELECTRIC
04/20GLOBAL UPS SERVICES MARKET 2018- ACT : 9strategy.biz added a depth and professio..
AQ
04/20EMERSON ELECTRIC : Blog Exposure - Emerson Expands its Professional Tools Busine..
AC
04/19EMERSON ELECTRIC : survey shows contractors are focused on navigating industry r..
AQ
04/19EMERSON ELECTRIC : to Acquire Tools, Test Equipment Business From Textron to Cre..
AQ
04/19NEWS ARTICLE : Craft brewery drives success with process automation swap
PU
04/18EMERSON ELECTRIC : to Buy Textron Unit for $810 Million -- Deal Digest
DJ
04/18EMERSON : to Acquire Tools and Test Equipment Business from Textron to Create Le..
BU
04/18EMERSON ELECTRIC : Regulations Bring Opportunities and Concerns to Contractors
PU
04/16NEWS ARTICLE : Digital Transformation = Business Transformation
PU
04/12EMERSON ELECTRIC : Schedules Webcast for Second Quarter Results
AQ
More news
News from SeekingAlpha
04/20A Good Start To The Year For ABB, But Management Has To Build From Here 
04/18Emerson (EMR) Acquires Tools & Test Equipment Business From Textron (TXT) - S.. 
04/18Emerson buys Textron's tools and test equipment business for $810M 
04/17Baby DivHut Dividend Income Portfolio Update Q1 2018 
04/16MY K.I.S.S. DIVIDEND PORTFOLIO : 1st Quarter 2018 Update 
Financials ($)
Sales 2018 17 121 M
EBIT 2018 3 049 M
Net income 2018 1 996 M
Debt 2018 1 776 M
Yield 2018 2,78%
P/E ratio 2018 22,50
P/E ratio 2019 19,69
EV / Sales 2018 2,71x
EV / Sales 2019 2,54x
Capitalization 44 566 M
Chart EMERSON ELECTRIC
Duration : Period :
Emerson Electric Technical Analysis Chart | EMR | US2910111044 | 4-Traders
Technical analysis trends EMERSON ELECTRIC
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 18
Average target price 71,7 $
Spread / Average Target 2,2%
EPS Revisions
Managers
NameTitle
David N. Farr Chairman & Chief Executive Officer
Edward L. Monser President
Steven J. Pelch Chief Operating Officer & Executive Vice President
Frank J. Dellaquila Chief Financial Officer & Senior Executive VP
Jake Fritz Chief Information Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
EMERSON ELECTRIC0.73%44 566
KEYENCE CORPORATION-2.02%71 600
SCHNEIDER ELECTRIC SE6.35%51 691
NIDEC CORPORATION4.09%46 350
DAIKIN INDUSTRIES, LTD.-5.13%34 912
EATON CORPORATION PLC0.06%34 859