United Technologies has made an unsolicited bid for Ohio based Diebold, a maker of ATMs, security systems and voting machines.
Hartford based conglomerate UTC has been in talks with Diebold for two years about a takeover, but as recently as February 21st the Ohio company rejected the idea. UTC made the unsolicited bid Friday, announcing it publicly on Sunday. The offer is for $2.63 billion, which values Diebold at around $40 per share â€“ a big premium on last weekâ€™s closing stock price of just over $24.
UTC CEO George David described it as a significant and immediate value for Diebold shareholders, which would also create long term value for UTC shareholders. Dieboldâ€™s ATM business has a strong presence in China, and UTC believes it can leverage the networks built up there by its Otis Elevator unit to grow the business. Dieboldâ€™s other segments could be a good fit for UTCâ€™s fire and security business, which the conglomerate has been boosting via acquisitions in recent years.
Diebold has been under investigation by federal regulators over its accounting practices, and recently agreed to restate four years worth of results.