Rockwell Doesn't Sit Well with Emerson Bid
ST. LOUIS, MISSOURI - Emerson Electric (EMR) but in a $27 bid to rock the automation industry and scoop up Rockwell Automation (ROK). The bid was immediately rejected by the firm who states that it would not be "in the best interest" of shareholders.
Rockwell specializes in industrial automation and control products, which fits perfectly into the Emerson family, which also has a segment for industrial automation as well as other solutions such as climate technology, process management, and commercial solutions.
Emerson stock instantly sank as the rejected bid means it would either have to raise the price, or look elsewhere as Rockwell does not seem interested in doing business under Emerson. Meanwhile, ROK stock shot up 8% as investor interest turned to the company which believes it is undervalued.
This is actually the second offer that Rockwell has received from the electrical specialist. Back in August, Emerson made a bid for $200 per share in both cash and stock. It increased its bid by 7.5% to $215 per share in half cash and stock.
"Since the previous bid however," noted investor, Simon Martinez, "Emerson stock has risen over 9% [including today's dip] which means that Emerson did not actually raise the price by that much."
Rockwell Automation stock currently trades at $202 per share.