Haier Raises Bid for Maytag Jun 27, 2005

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Chinese home appliance maker Haier Group has raised its bidding price for US appliance group Maytag Corp to U.S. $2.25 billion from the previous $1.28 billion, the China Business News reported.

"The acquisition group lead by Haier has promised to take up a total of $975 million worth of debt of Maytag, pushing its total bid to $2.25 billion," the Shanghai-based paper quoted an unidentified source as saying.

Initially, Haier and private equity firms Bain Capital Partners and Blackstone Capital Partners offered $16 per share, or a total of $1.28 billion in cash for Maytag.

Competing bidder Ripplewood Holdings, had offered in May to take over $975 million of Maytag debt, as well as a $14 per share, or a total of $2.1 billion in cash.

Haier spokesperson Ji Guangqiang was not immediately available for comment when contacted by XFN-Asia.

Should Haier succeed in acquiring Maytag, it would become one of the top four home appliance makers in the U.S., along with Whirlpool, General Electric, and Electrolux of Sweden.

Haier Group, headquartered in the eastern Chinese city of Qingdao, had total sales of $12.05 billion in 2004. It has two listed arms -- Qingdao Haier Co. Ltd. and Haier Electronics Group Co. Ltd. (AFX)

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