Emerson to not proceed with board nominations at takeover target NI Corp (updated)
23/01/2023 13:31
(Adds details, background, no comment from NI)
Jan 23 (Reuters) - U.S. industrial software firm Emerson
Electric Co EMR.N said on Monday it would not nominate
candidates for election to the board of testing and measurement
equipment maker NI Corp NATI.O and kept its buyout offer price
unchanged.
Emerson last week disclosed a hostile $53-per-share offer
for NI, which it has been trying to buy unsuccessfully for
several months, as it looks to capitalize on upbeat demand in
the automation sector.
The software firm had said it was prepared to nominate
candidates for election to NI's board in a bid to push through
its offer, but relaxed its stance on Monday after it was
encouraged by recent discussions between the companies.
"We are optimistic that the NI Board has commenced a
process that we believe will lead to the sale of the company. NI
has also confirmed Emerson will be a participant in that
process," Emerson said.
"Over the course of last week ... we have been pleased to
see engagement between the management teams and advisers (for
the two companies)."
NI said it has no comment at the time.
Emerson expects to increase its footprint in the testing and
measurement market and bolster its portfolio of automation
products if the offer to acquire NI goes through.
It had first approached NI last May with a $48-per-share
offer and later improved its bid, but its overtures were met
with a cold shoulder from NI, which announced earlier this month
that it was exploring strategic options and has adopted a poison
pill.
(Reporting by Priyamvada C in Bengaluru; Editing by Shinjini
Ganguli and Sherry Jacob-Phillips)
((Priyamvada.C@thomsonreuters.com https://twitter.com/priyamouli1812?lang=en;))