Air Products raises takeover offer to $5.5-bn for Airgas

Global supplier of industrial gases and equipment Air Products and Chemicals, Inc, yesterday raised its hostile bid for Airgas Inc to $5.5 billion, in order to press its smaller rival to close the deal that it has been pursuing since the past seven months.

Air Products said its latest offer is $65.50 a share in cash, up from its $63.50 bid made in July and a premium of more than 50 per cent over the closing price of Airgas' shares on 4 February 2010, the day before Air Products announced its proposal to acquire Airgas.

Air Products, which had been engaged in a friendly takeover discussions with Airgas since November 2009, had made a $5.1 billion in cash hostile bid in February to create one of the world's leading integrated industrial gas companies. (See: Air Products launches $5.1 billion unsolicited bid for Airgas)

But the board of Airgas has been continuously rejecting Air Product's offer as being too low including the last revised offer of $63.50 made in July.

Airgas is scheduled to hold an annual meeting on 15 September and Air Products is seeking a strong mandate from the independent shareholders of Airgas in electing the Air Products nominees on the board.

''All principal closing conditions have been satisfied. After more than 10 months of delay, there is no reason for the Airgas Board to refuse to negotiate a deal with us now. We look forward to the vote of Airgas shareholders and are confident they will make the right choice and vote,'' said John McGlade, Air Products chairman, president and chief executive officer.