Emerson Electric Co. (EMR, Financials) reiterated its commitment to acquiring Aspen Technology (AZPN, Financials) through a $265-per-share all-cash tender offer, emphasizing that the price represents its best and final offer.
First announced on Jan. 27, the tender offer results from months of talks with AspenTech's independent Special Committee. Emerson said the offer will not be raised and that March 10 is the deadline for tender shares. The business made it plain that it would not extend the offer or explore other deals should most minority AspenTech ownersthose unconnected with Emersonfail to surrender their shares.
Following a $11 billion acquisition in 2021 that united elements of its software business with the industrial software provider, Emerson, a worldwide technology and software firm, now owns a controlling share in AspenTech. The most recent tender bid aims to buy the last of the shares and seize complete control of AspenTech.Working with financial and legal consultants, the three independent directors on the AspenTech Special Committee carefully examined the offer over almost three months. After evaluating AspenTech's stand-alone development potential, the committee decided unanimously that minority investors should accept the offer as it seemed better than AspenTech's prospects as an independent firm.Emerson brushed aside criticism from well-known activist investor Elliott Investment Management L.P., who last week openly questioned the offer. Emerson said that rather than investors who just bought AspenTech's shares for merger arbitrage, the Special Committee is more suited to assess AspenTech's long-term prospects.Should the tender fall short of the minimum needed participation, the business also cautioned that AspenTech's majority ownership would remain intact and control over the publicly listed company would be under ongoing flux. Emerson specifically decided not to sell any divestment of its present ownership in the firm.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.