Maytag now has a third party showing interest in purchasing it. That party is Whirlpool, who has offered Maytag $17 per share. Maytag’s board is still leaning toward Ripplewood, but the company said it would consider Whirlpool’s offer.
Jeff M. Fettig, Whirlpool’s chairman, president and CEO said, “This transaction will provide Maytag shareholders with superior value compared to the current offer.”
Maytag has been in kind of a slump this year as profits from its Hoover unit have declined, and Best Buy stopped selling their washing machines and refrigerators.
As mentioned, Whirlpool is the third party to show interest in acquiring Maytag. Aside from Ripplewood, China’s Haier Group has had talks with the company. Godwin Chellam and Doug Young or Reuters write:
China’s largest appliance maker, Haier, is likely to decide this week whether to top Whirlpool Corp.’s $1.3 billion bid for Maytag, but industry experts question whether it can bankroll such a bid.
A consortium that includes the Chinese state giant — which domestic media say takes in more than twice Maytag Corp.’s annual sales — may sharply boost its $16/share bid to grab the iconic maker of Hoover vacuum cleaners, some analysts say.
Whirlpool expects its full-year 2005 earnings per share to be between $5.90 and $6.10. The company also expects cash provided by operating activities to be about $860 million, and free cash flow to be in the $250 to $300 million range.
Yesterday, Maytag shares jumped $2.03 or 13% closing at $17.48 on the New York Stock Exchange. Whirlpool shares jumped $3.32 or 4.7% closing at $73.71.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
