Response to Press Speculation - 12 May 2008
In response to press speculation and a rise in Chloride’s share price, the Company published an announcement at 09:41 on 12 May 2008, the full text of which is set out below:-
“CHLORIDE GROUP PLC (“Chloride” or the “Company”)
The Board of Chloride notes the recent press speculation and the rise in the Company’s share price and confirms that it received a preliminary approach from a third party regarding a possible cash offer for the Company at 255 pence per Chloride share. The approach was subject to a number of conditions and pre-conditions including due diligence. The Board of Chloride considered the proposal and concluded that it materially undervalued the Company and its prospects. Accordingly, it was not in the interests of Chloride and its shareholders and the Board has rejected it.
As indicated in the Company’s recent pre-close trading update, Chloride has a robust business model, clear strategy and strong positions in geographies and higher growth market sectors (including IT services, data centres, energy and oil & gas) where secure power is increasingly critical to business continuity. Accordingly, the Board considers the Company to have excellent prospects as an independent group.
This announcement has been made without the consent of the aforementioned third party.”
The announcement made by Chloride was followed by an announcement published by Emerson Electric Co at 11:54 on 12 May 2008, the full text of which is set out below:
“Emerson Electric Co (“Emerson") – Statement re possible offer for Chloride Group PLC (“Chloride”)
Emerson notes the recent movement in the share price of Chloride and the speculation concerning a possible offer for Chloride. Emerson confirms that on 18 March it made its first approach to the Board of Chloride with a proposal to make a cash offer for Chloride. There can be no certainty that an offer for Chloride will be forthcoming. A further announcement will be made in due course if appropriate.
This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of The City Code on Takeovers and Mergers.”