Emerson sweetens Rockwell Automation offer to $29 billion

By Thomas Black and John Bowker, for Bloomberg Technology

Nov 16, 2017

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Emerson Electric Co. Chief Executive Officer David Farr made a third proposal to buy Rockwell Automation Inc., sweetening the deal by 4.7 percent as he seeks to cobble together a one-stop shop for industrial automation.

The cash-and-stock offer of $225 a share values Rockwell Automation at about $29 billion. That represents a 30 percent premium to the 90-day volume-weighted average share price as of Oct. 30, Emerson said in a statement Thursday.

The Milwaukee-based company twice has rejected Emerson offers – at $200 a share in August and $215 a share in October – as Rockwell maintained it was better off alone with a successful Logix product that gives customers a single software platform to build on instead of learning multiple ones. The company has attempted to move into process automation, where Emerson has a stronghold, to accelerate growth.

Rockwell said it had received the proposal and would respond in due course.

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