Update: Chloride rejects bid, Emerson confirms approach
Chloride shares surged after the power supply protection firm said it rejected a preliminary 255p offer, while US giant Emerson Electric confirmed it has approached Chloride with a proposal.
"Emerson confirms that on 18 March it made its first approach to the board of Chloride with a proposal to make a cash offer for Chloride," said Emerson Electric after Chloride announced that it rejected a preliminary approach from a third party regarding a possible cash offer.
Chloride said the offer was subject to a number of conditions and pre-conditions including due diligence.
"The board of Chloride considered the proposal and concluded that it materially undervalued the company and its prospects. Accordingly, it was not in the interests of Chloride and its shareholders and the board has rejected it," said the group.
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Chloride was responding to a report in the Sunday Telegraph, which suggested potential buyers could be US firms Eaton Corp, Emerson Electric or French outfit Schneider Electric.
The group added that it has excellent prospects as an independent group.
Emerson said there can be no certainty that an offer for Chloride will be forthcoming
