Automation equipment maker Rockwell Automation Inc
Rockwell`s shares rose as much as 12.7 percent before paring gains to 7.6 percent at $201.09 in late-afternoon trading, and Emerson`s shares fell about 4.4 percent to $64.35.
Milwaukee, Wisconsin-based Rockwell said it had previously rejected Emerson`s first buyout offer made on Aug. 2 worth $200 per share, with about half of the consideration in cash and the rest in Emerson stock.
On Oct. 10, St. Louis, Missouri-based Emerson raised its cash and stock offer to $215 per share. But Rockwell`s board, after a careful review, rejected it, Rockwell said.
Up to Monday`s close Rockwell`s shares had risen 13.2 percent, helped by improving sales in the United States and emerging markets.
"A combination would provide increased scale and help expand industrial product and service offerings," CFRA Research analyst Joe Agnese said.
CNBC television on Tuesday was the first to report that Rockwell had rejected the multiple offers from Emerson.
Emerson said it made a private offer to Rockwell, proposing a combination of the companies, adding that currently no discussions were ongoing between the two entities.
Emerson is looking to expand in areas such as industrial automation amid increasing competition from European rivals such as Siemens
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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