(Updating with Emerson's press release)
LONDON (Thomson Financial) - Power supply equipment company Chloride Group
Plc. has confirmed it received a preliminary approach from a third party
regarding a possible cash offer for the company at 255 pence per share, but it
has rejected the offer as it "materially undervalued" the company and its
prospects.
Separately, engineering services company Emerson Electric Co. confirmed that
it made its first approach to the board of Chloride with a proposal to make a
cash offer for the company on March 18.
Shares in Chloride soared in early deals Monday, after media reports in the
Sunday Telegraph and Monday's Financial Times that the company had received a
takeover approach.
At 10:02 a.m., shares in Chloride were up 25.24 percent, or 52-1/2 pence at
260-1/2, while the FTSE 250 index added 84.2 points to 10,521.5.
The company said it has excellent prospects as an independent group based on
its robust business model, clear strategy and strong positions in geographies
and higher growth market sectors.
TFN.newsdesk@thomson.com
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