NORTH CANTON, Ohio – Shares in Diebold Inc. yesterday soared 60% after the company rebuffed a $2.6 billion takeover offer from United Technologies, labeling the bid "opportunistic."
"The board strongly believes that UTC's proposal significantly undervalues the company and fails to reflect Diebold's strengths and significant upside potential," said John Lauer, non-executive chairman of the Diebold board. "UTC's proposal is an opportunistic attempt to buy Diebold at a time when shareholders do not have sufficient data to evaluate the offer and as such, the board believes it would be irresponsible to engage in discussion with UTC at this time."
He was referring to the continued delay by the world's biggest ATM manufacturer in filing its financial disclosures, going back to the second quarter in 2007. The company said there will be additional delays in filing its financial, including its annual report.
Diebold has been troubled the past few years by its heavy investment in electronic voting machines and recently moved to separate the operation from its main ATM business.
Diebold shares, which had lost half of their value over the past year, surged ahead $14.72 and closed at $38.84 after UTC announced its $40-a-share offer.
