NEW YORK (Reuters) - Air Products and Chemicals said Monday it raised its bid for Airgas Inc to $5.5 billion, the latest salvo in its hostile bid for therival company.
The new Air Products cash offer of $65.50 a sharerepresents a 3 percent increase from its previous bid of$63.50. The company said the price would mark a premium of morethan 50 percent to the Airgas closing price on Feb. 4, the daybefore the takeover drive began. Air Products had made a $60 ashare bid for the company in February.
Airgas said its board will review the offer and advisedstockholders to take no action at this time.
If successful, Air Products would become the biggestindustrial gas company in North America, and it could gainsubstantial benefits from the economy's resurgence as therecession abates.
Airgas, which has called previous offers "grosslyinadequate," is scheduled to hold an annual meeting on Sept. 15at which Air Products is hoping to have its nominees for theboard elected.
Airgas, which has called previous offers "grosslyinadequate," is scheduled to hold an annual meeting on Sept. 15at which Air Products is hoping to have its nominees for theboard elected.
Airgas sells canisters of specialty gases to industrial andmedical facilities, and buys much of its gas from Air Products.
Air Products said that if Airgas shareholders do not electits three nominees to the board at the meeting, it wouldterminate the offer and pursue "other attractive growthopportunities."
Shares of Airgas closed at $66.67 on the New York StockExchange on Friday. (Reporting by Paul Thomasch and Megan Davies; Editing byKenneth Barry and Diane Craft)
