Rockwell Automation (NYSE:ROK) has rejected yet another takeover offer from rival Emerson Electric Co (NYSE:EMR), claiming the US$29bn bid still undervalues it and that a merger would dampen its growth prospects.
In a statement, the board of the controls and automation software maker said it had “unanimously determined” that Emerson’s proposal was not in the best interests of the company or its shareholders.
“Emerson’s proposal undervalues Rockwell Automation and its prospects for continued growth and value creation, presents significant long-term risk for Rockwell Automation’s shareowners, and would create a company that is not well-positioned to compete successfully in the evolving market,” it said.
“The board believes that continuing to execute Rockwell Automation’s successful strategy, which is generating extraordinary returns for the company’s shareowners, will create greater long-term value than pursuing Emerson’s proposal.”
Emerson has seen offers of US$200 per share and US$215 rebuffed in recent weeks, but returned a few days ago with an offer of US$225, to be paid US$135 in cash and US$90 in stock.
The latest offer represents a 30% premium to Rockwell’s volume-weighted share price in the three months before the first approach became public on October 31.
According to the Wall Street Journal, Rockwell has refused to even engage in discussions over a possible merger.
Rockwell shares fell 0.7% to US$191.74 in pre-market trade, while Emerson edged 1.7% to US$61.39.