Reports says Haier has raised bid for Maytag

Reports say Haier has raised bid for Maytag
 
Date June 24, 2005
Section(s) Local News
Brief  
 
By PETER HUSSMANN

Editor

News reports out of east Asia said today that Chinese appliance maker Haier has raised its bid for Maytag Corp.

According to reports by news agency AFX, Haier, which on Tuesday offered a $16 a share bid totalling $1.28 billion for the troubled U.S. appliance manufacturer, has now agreed to assume $975 million in debt held by the Newton-based company. The total acquisition bid now stands at $2.25 billion.

Haier, China’s largest appliance maker, offered a preliminary, non-binding proposal for Maytag along with U.S. equity firms Bain Capital Partners and Blackstone Capital Partners.

The Chinese bid for Maytag follows Ripplewood Holdings May offer of $14 a share, plus the assumption of the $975 million in debt. Its total bid, which was agreed to by the Maytag Board of Directors, amounts to $2.1 billion. Ripplewood was joined by equity firms GS Capital Partners and the J.Rothschild Group.

Maytag spokesman John Daggett said Haier is in the process of doing its due diligence and won’t know complete details of its offer until that effort is complete, approximately six to eight weeks from now.

On Tuesday, Maytag said it would proceed with due diligence on the Chinese offer but said there was “no assurance” a definitive agreement would be reached.

At that time, the Maytag board said it continued to support the Ripplewood offer but felt the offer from Haier should be looked at for the benefit of stockholders.

If Haier acquires Maytag, it would become one of the top four appliance manufacturers in the United States, along with Whirlpool, General Electric and Electrolux.

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