by Robert Bell
Posted 1/11/2011 10:27 am
Updated 2 years ago
ABB Ltd. of Zurich and Baldor Electric Co. of Fort Smith on Tuesday announced that ABB's subsidiary, Brock Acquisition Corp., has extended the expiration date for its tender offer for all of Baldor's outstanding shares.
The offer had previously been scheduled to expire Jan 10. Tuesday's move extended the offer to Jan. 19.
The extension was made to allow the Antitrust Division of the U.S. Department of Justice more time to complete its review of the acquisition, a Baldor spokeswoman said.
The closing of the tender offer is subject to customary terms and conditions, including regulatory clearances.
On Dec. 21, the DOJ issued requests for additional information as it reviews the pending acquisition. ABB and Baldor continue to believe that the DOJ issued the requests in order to give itself additional time to complete its review of the transaction, according to a statement.
In a news release, both companies said they remain confident that the DOJ will find that the merger raises no antitrust concerns. ABB and Baldor said they still expect the deal to close in the first quarter of 2011. It said closing conditions relating to Austrian, German and Canadian antitrust clearances have been satisfied.
The merger agreement was announced in November.
At the close of business on Monday, about 40,970,885 shares of common stock of Baldor, which represent 86.38 percent of the 47,429,863 outstanding shares, had been tendered.
The tender offer is for Baldor common stock at $63.50 per share net to the holder in cash, without interest and less any required withholding taxes.