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The Airgas (NYSE: ARG) Board of Directors unanimously rejected an increased offer from Air Products, stating Air Products "continues to grossly undervalue Airgas."
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Air Products & Chemicals Inc. (NYSE: APD) had increased its tender offer to acquire the Radnor, PA-based industrial gases and hardgoods distributor at a price of $65.50 a share in cash. The closing price of Airgas on Friday, Sept. 3, was $66.67. The previous offer was $63.50 per share.
"We believe that this slight increase in Air Products' offer price does not adequately compensate Airgas stockholders for the Company's inherent value, excellent prospects and impressive economic performance since Air Products first announced its offer," Airgas CEO Peter McCausland said. "The Board is unanimous in its belief that $65.50 per share is not an appropriate value or a sensible starting point for negotiations to achieve such a value."
Airgas, No. 4 on MDM's list of top 40 industrial distributors, advised its shareholders that the company would undertake "repurchases or other transactions" for stockholders interested in selling their shares.