Haier Drops Maytag Bid Jul 20, 2005

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Appliance maker Maytag Corporation announced that it received a letter from China-based appliance maker Haier America Trading, L.L.C., Bain Capital Partners LLC, and Blackstone Management Associates IV L.L.C., stating that the group will not pursue the transaction to acquire the outstanding shares of Maytag.

Haier placed a bid worth U.S. $1.28 billion, valued at $16 per share on June 20, after Maytag agreed on May 19 to be acquired by Triton Acquisition Holding, which was organized by investment company Ripplewood Holdings LLC, for $14 a share, in a deal valued at about $1.13 billion.

Haier's announcement comes after fellow appliance maker Whirlpool Corporation recently placed a bid to acquire Maytag for $17 per share, representing a 21-percent premium over the price offered by Triton.

Whirlpool's transaction is valued at $2.3 billion in cash and stock, based on Whirlpool assuming $969 million of Maytag debt.

According to a statement from Maytag, its board of directors would consider the proposal, adding that it has not changed its recommendation of the existing transaction.

According to Whirlpool, its proposal represents a "Company Takeover Proposal," and the company is prepared to execute a confidentiality agreement prior to the Aug. 19, 2005 deadline Maytag set for its shareholders meeting.

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