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Diebold, United Technologies share conflicting updates about the ATM manufacturer's biz
March 27, 2008
LOUISVILLE, Ky. — Yesterday, CNN Money reported that United Technologies Corp. now holds 3.5 percent of Diebold Inc.'s outstanding common stock, roughly 2.28 million shares.
Hartford, Conn.-based UTC is reportedly Diebold's sixth-largest shareowner. UTC began acquiring Diebold shares in July 2005.
On March 2, UTC made an offer to buy Diebold for $3 billion. Diebold executives quickly replied publicly, saying the offer underestimates Diebold's value.
But UTC's vice president of finance said yesterday that Diebold is in jeopardy of having its stock delisted on the New York Stock Exchange, and that UTC's offer to buy the company still stands.
"We remain committed to our offer," said Jim Geisler, UTC's vice president of finance. "The New York Stock Exchange has notified Diebold that it is at risk of delisting due to management's failure to file timely financial statements. Delisting would be detrimental to shareowners. This development underscores the need for Diebold's board to engage with UTC on our compelling cash offer."
Diebold, however, issued a statement late yesterday reaffirming its position that the offer from UTC "significantly undervalues" the company. It also said UTC's assertions regarding a potential delisting from the NYSE are misleading. Diebold says it faces no chance of delisting until at least Sept. 17, and even then a six-month extension could be granted by the Securities and Exchange Commission.
Diebold says it anticipates its financial review to be completed by the end of the second quarter of this year, after which time it plans to make all appropriate filings "as soon as possible."
"The company is confident that executing on its strategy will create substantially greater value for shareholders than the UTC proposal," Diebold said in a news release. "Diebold is working diligently to complete its filings and ensure that its investors can make fully informed decisions about their investment."
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