United Technologies has withdrawn its takeover offer for Diebold, the Ohio based maker of ATMs and voting machines.
Hartford’s UTC launched a hostile takeover bid for Diebold in February, valuing the troubled company at forty dollars a share – a big premium to its share price at the time. The ATM side of Diebold’s business might have offered an opportunity for UTC to expand its business in Asia, using networks built up by its Otis Elevator unit.
But Diebold’s board said the bid undervalued the company, and consistently rejected UTC’s advances. In a letter made public Monday, UTC Chairman George David told Diebold he had hoped the transaction could have created substantial value for both companies’ shareholders, and said it’s unfortunate this won’t happen.
Diebold’s shares fell slightly on the news, despite the overall market rally, but rebounded to end Monday up around one and a half percent. The withdrawal comes in the same week that UTC will unveil its third quarter earnings – there’s some nervousness among analysts that the strengthening dollar and the global economic meltdown may be taking their toll on the industrial conglomerate.