NATI - Emerson Electric Makes an Aggressive Takeover Bid for National Instruments: What You Need to Know
Emerson Electric's (NYSE: EMR) hostile takeover bid for National Instruments (NASDAQ: NATI) , or NI, has all the ingredients of a thriller. Eight months and two bids after the initial approach, Emerson's management decided to take the case directly to NI shareholders due to a lack of engagement from the latter's management. This story has legs, so let's look at what's going on and what both sets of shareholders might think of it.
Having initially approached in mid-May, Emerson proposed a $48 a share (in cash) bid in late May, only to be rejected in June and then dismissed again in August after Emerson reiterated the proposal and included a request for information in late June. Emerson returned in November with a $53 cash bid, which NI promised it would evaluate. Following a flurry of communication and meeting on Jan. 4, followed by a call on Jan. 9, Emerson submitted a fourth proposal on Jan. 11 reiterating the $53 bid describing the information shared by NI's management as "superficial."
Two days later, NI announced a strategic review (with no deadline) and approved a poison pill rights plan "intended to reduce the likelihood that any person or group gains control of the Company through open market accumulation or other tactics." In response, Emerson went public with its bid.
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Emerson Electric Makes an Aggressive Takeover Bid for National Instruments: What You Need to Know