By NATHAN BECKER
Airgas Inc.'s board has recommended its shareholders reject Air Products & Chemicals Inc.'s $5.1 billion takeover effort, again contending its larger rival "is trying to obtain the future value of Airgas at a bargain-basement price." Two weeks ago Airgas's board had rejected the $60 a share bid. Days later, Air Products said it would take the offer directly to shareholders.
"The Air Products offer significantly undervalues Airgas and fails to reflect the value of our industry leading position and future growth prospects," Airgas Chairman and Chief Executive Peter McCausland said Monday. An Air Products spokesman couldn't immediately be reached for comment. A merger would create the largest industrial-gas maker in North America by revenue. Air Products has annual sales of $8.3 billion and sells gases such as argon, hydrogen and oxygen to industrial plants. It previously tried to buy the smaller rival, which serves a different market segment and has a retail customer base, by offering cash and stock with an "implied" value of $62 a share in December. Some analysts believe Airgas has significant defenses to ward off a hostile takeover.
Kevin L. Brown http://www.stardustspillproducts.com/
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