Appliance maker Maytag Corporation announced that Maytag stockholders approved the proposed merger with fellow appliance maker Whirlpool Corporation.
Based on the preliminary vote total announced at the meeting, the merger was approved by 68.5 percent of the shares outstanding and 97.8 percent of those shares voting. The proposal only required an approval of more than 50 percent of the shares outstanding.
Under the merger, Maytag stockholders will be entitled to receive for each share of Maytag common stock, approximately U.S. $21 in value, comprised of $10.50 in cash and between 0.1144 and 0.1398 of a share of Whirlpool common stock, depending on the volume weighted average trading prices of Whirlpool common stock during a 20-day trading period ending shortly prior to completion of the merger.
"We are very pleased that Maytag's shareholders have fully endorsed the merger," said Jeff M. Fettig, Whirlpool's chairman and CEO. "The combination of Whirlpool and Maytag will create very substantial benefits for consumers, trade customers and our shareholders. We believe this transaction will result in better products, quality and service, as well as efficiencies, which will enhance our ability to succeed in the increasingly competitive global home-appliance industry."
The final vote total will be posted on Maytag's website, www.maytagcorp.com after the inspector certifies the vote totals.
The Antitrust Division of the Department of Justice is reviewing the proposed merger. In order to facilitate the review, Whirlpool and Maytag have agreed not to close the proposed merger before Feb. 27, 2006, without the Antitrust Division's concurrence, although the Antitrust Division may request additional time for review. Whirlpool and Maytag continue to expect the transaction to close as early as the first quarter of 2006.
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