Iowa-based Maytag and its purported buyer, Whirlpool, got into a standoff Friday over the future of Maytag`s Hoover brand.
In response to Maytag`s surprisingly poor net fourth-quarter loss, about five times as bad as the year-earlier quarter results, the company`s chairman said he intended to ‘evaluate alternative strategies for our floor-care product line and commercial businesses, including their possible sale.’
The possibility that Maytag would sell its money-losing floor-care products and commercial businesses — including its Hoover brand — bought a swift response from Whirlpool, which publicly asserted its right to veto any a sale. Whirlpool expects to buy Maytag for about $2 billion next month.
‘Under the framework of the merger agreement, we have the right to approve the sale of significant assets by Maytag, including these businesses,’ Jeff M. Fettig, Whirlpool`s chief executive officer, said in a publicly released statement.
Whirlpool looks forward to reviewing any proposals Maytag may present, within the framework of our merger agreement, he said.
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