Air Products will not appeal Airgas court ruling, will 'move on'

16 February 2011 16:37  [Source: ICIS news]

TORONTO (ICIS)--Air Products will not seek to appeal an adverse US court ruling that effectively ended its year-long $5.9bn (€4.4bn) battle to take over rival Airgas, the US-based international industrial gases major said on Wednesday.

Air Products would “move on” to other opportunities, although it did not see any deals on the scale of Airgas, CEO John McGlade and chief financial officer Paul Huck said in an analysts' call.

“We are done [with Airgas],” Huck said, when asked if his company might make a new bid for Airgas at a later time.

Air Products withdrew its $70/share offer for Airgas on Tuesday, after the Delaware Chancery Court upheld Airgas’s “stockholder rights plan”.

Commentators said the court’s decision was in line with rulings that upheld “poison pills” defences and favoured a target’s incumbent management in US takeover fights.

“We made our best and final offer of $70/share, and the Airgas board still will not let the Airgas shareholders decide for themselves whether they want to accept that offer,” said McGlade.

“Despite [Airgas statements], we are convinced they are unwilling to sell the company at any price,” he said.

“We believe the Airgas board has done a great disservice to the Airgas shareholders,” McGlade added.

Air Products launched the bid, initially for $60/share, in February 2010. Airgas continued to value the company at $78/share.

Meanwhile, Airgas announced a $300m share repurchase programme on Wednesday.

Air Products’ shares were up 3.86% to $93.70 at 10:45 local time in New York. Airgas shares were down 0.56% to $63.17.

($1 = €0.74)

For more on Air Products, Airgas and other producers visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index