ATLANTA, Aug 15 (Reuters) – Brokerage firm Morgan Keegan said on Monday that appliance maker Whirlpool Corp.’s proposed acquisition of rival Maytag Corp. could likely be completed early next year, as regulatory approval could take several months.
In a research note, Morgan Keegan analyst Laura Champine said it would likely be the first quarter of 2006 before a Maytag-Whirlpool deal could be completed, given the sequence of events that could take place and likely timing of a shareholder vote.
“We believe regulatory clearance may take several months,” Champine said.
Last week, Maytag’s board switched its support to Whirlpool’s sweetened offer of $1.7 billion, or $21 a share, withdrawing a previous recommendation that investors approve a $1.1 billion, or $14 a share, buyout bid by a group led by private equity firm Ripplewood Holdings.
Ripplewood has five days to raise its offer or terminate its pact with Maytag. If Ripplewood makes a counter proposal, Maytag would then weigh whether it is better than the bid by Whirlpool, which has raised its offer three times since initially bidding $17 a share in mid-July.
A combination of Maytag, which makes Hoover vacuums and Jenn-Air and Amana appliances, and Whirlpool, whose brands include KitchenAid and Roper, would create the world’s biggest appliance maker.
From Reuters