NEW YORK (AP) — Emerson announces a $7.6 billion offer to buy National Instruments, saying the company has avoided serious buyout talks since early last year.
Emerson increased its cash offer for the scientific instrumentation and software maker to $53 per share in November, up from a $48 per share offer it made back in May.
Shares of National Instruments jumped 15% on Tuesday before the market opened.
Emerson said it has repeatedly attempted to initiate private negotiations with National Instruments Corporation since May. The St. Louis-based company said that when it unveiled the hike in November, National Instruments said it had formed a panel to review the proposal and evaluate options. But Emerson said National Instruments has resisted getting involved ever since.
Emerson Electric Co., a maker of process control systems, valves and analytical instruments, said it met with National Instruments earlier this month, but National Instruments shared “limited high-level” information about its business and was unwilling to provide more information. Detailed information. Emerson said National Instruments said this would be the limit of its participation.
Last week, National Instruments said it was conducting a strategic analysis and enacting a “poison pill,” a financial maneuver that companies use to scare away unwanted fans.
The elements of each poison pill are different, but they are all designed to enable the board of directors to flood the market with so many newly created shares that a takeover becomes prohibitively expensive.
“While Emerson would prefer to reach an agreement privately, given National Instruments’ announcement that it is conducting a strategic review, and after refusing to work with us on a premium cash transaction for the past eight months, we are making public our commitment to the benefit of all shareholders. National Instruments,” Emerson President and CEO Lala Karsanbhai said in a prepared statement.
Austin, Texas-based National Instruments did not respond to a request for comment on Tuesday.
Emerson is interested in National Instruments’ differentiated test and measurement offerings and technology stack of smart devices, controls, and software.
Emerson has acquired 2.3 million shares of National Instruments and says it has received permission to increase its stake.
Emerson shares fell 2% in premarket trading on Tuesday.
