Siemens launches C$382-mn bid for Canada’s RuggedCom
31 Jan 2012
German industrial conglomerate Siemens AG yesterday launched a C$382 million ($381 million) cash bid for RuggedCom Inc, a Canadian maker of data communications networks systems, in order to expand its presence in North America and the Asia-Pacific region.
Siemens, Europe's largest engineering company, is offering C$33 for each share of RuggedCom, a premium of 25 per cent to the company's closing price on 27 January.
Siemen's offer, made by its Canadian unit, Siemens Canada, has topped a $22 per share or $272 million hostile bid made early this month by US cable and networking products maker Belden Inc.
RuggedCom has rejected Belden's bid as being too low and opportunistic and had set up a so-called poison pill defense to thwart the transaction.
The Siemens bid provides a $15-million break-up fee to be paid to the Munich-based company in case the deal fails to close.
Woodbridge, Ontario-based RuggedCom designs and makes Ethernet switches, network routers, wireless devices, serial servers, media converters and proprietary embedded software and application software.
