to the country that sponsored "Old Ronery". 
Posted on 07/17/2005 8:47:49 PM PDT by Happy2BMe
Whirlpool sets $1.3 bln bid for Maytag
Sunday July 17, 11:36 pm ET
By Karen Jacobs
The Whirlpool offer of $17 a share beats a $14 a share bid by an investor group led by New York private equity firm Ripplewood Holdings. The offer represents a 10 percent premium over Maytag's closing stock price of $15.45 on Friday.
The offer could ignite a bidding war, as a group including Chinese appliance maker Haier has expressed interest in buying Maytag for $16 a share but has not made a formal bid. Haier's partners -- U.S. investment firms Bain Capital Partners and Blackstone Capital -- were not available for comment.
The combination of Whirlpool and Maytag would marry Whirlpool's Roper and KitchenAid appliance brands with Maytag's Hoover, Jenn-Air, Amana and Jade brands.
Whirlpool, which also reaffirmed its 2005 earnings forecast, valued its offer at $2.3 billion, including the assumption of $969 million debt. The company has scheduled a conference call to discuss the bid at 11:00 a.m. EDT (1500 GMT) on Monday, July 18.
The Whirlpool offer values Maytag at almost 35 times expected 2005 earnings of 49 cents a share. That's almost three times Whirlpool's forward PE of 12.
Representatives of Ripplewood were not immediately available to comment, and calls to Maytag were not immediately returned.
Maytag has set an Aug. 19 shareholder vote in Newton, Iowa, to vote on the Ripplewood deal. Ripplewood's investment vehicle, Triton Acquisition Holding, made its offer in May.
In a letter to Maytag appended to its news release, Whirlpool said it would pay at least 50 percent in cash and the balance in shares. Whirlpool Chief Executive Jeff Fettig said in a statement that Maytag fits its "strategy and capabilities, will create strong value for our shareholders and provide direct benefits to consumers and trade customers."
Whirlpool, based in Benton Harbor, Michigan, said it still expects to deliver full-year 2005 earnings in the range of $5.90 to $6.10 a share, compared with a consensus estimate by Reuters Estimates of $5.89 a share.
Maytag has seen its profitability decline in recent years amid a slump at its Hoover unit, higher raw materials prices and increased competition from Asian rivals with lower costs.
This year, Maytag hit a low when retailer Best Buy stopped selling its washers and refrigerators. Home Depot, which accounted for 10 percent of Maytag's sales last year, introduced LG Electronics appliances, increasing the competition Maytag faces on that sales floor.
Maytag shareholders have criticized the Triton bid as too low, and Maytag said in a recent federal filing that it faced stockholder lawsuits over the deal's value.
Whirlpool's letter to Maytag said that it was ready to "immediately review the due diligence information" that Maytag has provided to Ripplewood and is currently providing the Haier group, which includes Bain Capital and Blackstone Capital.
Whirlpool's letter to Maytag said the companies can achieve "substantial efficiencies" to drive cost savings, use of assets and innovation.
In recent weeks, Triton put pressure on Maytag to speed up discussions with the Haier group. Triton has said the delayed process could result in it walking away from its deal and claiming a $40 million breakup fee. Maytag expects to finish due diligence with Haier on July 22, it said in a recent SEC filing.
The pact with Maytag contains a clause giving Ripplewood a "last look" at a rival offer, allowing it to match the offer it if chooses.
Whirlpool's stock started the year at $71, slid to around $61 by mid-May, and then hit a high of $74.03 on June 21. Maytag traded in the $9 range shortly before the Ripplewood bid.
Whirlpools is set to go up against the People's Republic of China on Monday to bid for Maytag against the Chicoms . .
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The offer could ignite a bidding war, as a group including Chinese appliance maker Haier has expressed interest in buying Maytag for $16 a share but has not made a formal bid. Haier's partners -- U.S. investment firms Bain Capital Partners and Blackstone Capital -- were not available for comment.
Keep Maytag American!
Owned by americans but parts made in taiwan and mexico.
It's a money-laundering scheme.
to the country that sponsored "Old Ronery".
Was just in the Amana colnies near cedar rapids a few weeks ago. Where they have the maytag factories.
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