Wall Street Journal & NYTimes

Thanks to Michael B. Green for providing the quotes:

THE WALL STREET JOURNAL
United Technologies Offers
$2.63 Billion for Diebold
By MATTHEW KARNITSCHNIG and J. LYNN LUNSFORD
March 3, 2008; Page A3

The $40-a-share bid, made on Friday, represents a 66% premium to Diebold's Friday closing share price of $24.12. It is about 27% below Diebold's 52-week high, hit intraday in July, of $54.50. Diebold shares rose more than 62% on the news Monday morning to $39.17.

Diebold couldn't be reached for comment.

The move is the latest by UTC Chief Executive George David to expand the company's fledgling fire-and-security business through acquisitions. United Technologies acquired Chubb PLC of the United Kingdom and stood it up as a separate business alongside much larger UTC units such as Otis elevator, Carrier air-conditioning and Pratt & Whitney jet engines. ....[Much much much details about the business organization of each, and then, at last from the WSJ, as opposed to the NYT, a comment truly relevant to election integrity]

United Technologies officials said Diebold would fit nicely into the company's business model, which relies heavily on profitable aftermarket sales and maintenance, particularly in businesses such as Otis elevator and its new fire-and-security unit.

The acquisition of Diebold would thrust United Technologies into some new lines of business, such as automated teller machines and voting machines. Mr. Geisler played down the significance of a company that also does defense contracting and sells voting machines, noting that those machines represent about 2% of Diebold's revenue. About 25% of Diebold's revenue last year came from its security products.

THE NEW YORK TIMES
March 2, 2008
United Tech Makes Bid For ATM Maker Diebold
By REUTERS
Filed at 7:58 p.m. ET

PHILADELPHIA (Reuters) - United Technologies Corp <UTX.N> said on Sunday it made a $2.64 billion unsolicited bid for Diebold Inc <DBD.N> after trying to hold merger talks with the automatic teller machine maker for more than two years.

United Technologies (UTC), the world's largest maker of elevators and air conditioners, said Diebold would make an "excellent fit" due to its "strong market position, U.S. footprint, and balance between product and service revenues."

"In addition, Diebold will benefit from UTC's international presence and disciplined operating systems."

United Technologies said Diebold told it earlier this month that a merger of the two companies was not in the best interest of Diebold shareholders. Diebold could not be immediately reached for comment on Sunday.

"Failing an ability to engage in discussions with Diebold's board and management, we believe it is in your shareholders' interests to know of this proposal," United Technologies said in a letter to Diebold.

The $40-per-share cash offer marks a 66 percent premium to Diebold closing stock price of $24.12 on Friday on the New York Stock Exchange. Based on Diebold's roughly 66 million shares outstanding as of May 7, the deal is valued at $2.64 billion.

United Technologies said a higher offer could emerge, depending on any additional value it found in Diebold during a review of its books. It said it could begin due diligence immediately and believed a definitive deal could be reached within 30 days.

<snip>

by Rady Ananda (56 articles, 166 quicklinks, 17 diaries, 387 comments) on Saturday, March 8, 2008 at 8:45:31 AM
 

But the Question is - why is United so motivated??

I won't force feed this to you.  I know the detailed history of ownership and board involvement of United and there is a little thing involving GHWBush and the Bush family involvement that makes me wonder.

Further, I happen to be friends with a consultant to United and know how hard he and others lobbied the Clinton Administration and certain congressmen within the defense authorization subcommittees including Chuck Hagle.

 The United history is a cesspool of political influence and rewards bordering on returned favors or kickbacks.

I think your answer to your question will be obvious once you study the ownership history of united technologies

by Bill Burkett (15 articles, 0 quicklinks, 0 diaries, 21 comments) on Saturday, March 8, 2008 at 8:54:23 AM
 

Positively Machiavellan

I've been researching this topic as well.

I'm trying to figure this out actually, and from opensecrets.org, I'm learning that United Technologies, represented by Black, is the 5th largest contributor to PACS and individuals in the Defense Aerospace Industry. They have donated a total of $485, 450 in 2008 alone, at a rate of 57% for DEMOCRATS and 43% for Republicans. What I have yet to figure out is how much United Technologies has donated to John McCain's campaign, or as Senator, or how much to Clinton.

I think this is a relevant question.

Any thoughts as how to figure this out?

by Joy Williams (0 articles, 0 quicklinks, 0 diaries, 1 comments) on Saturday, March 8, 2008 at 6:31:51 PM