IMGCAP(1)]
United Technologies Corp. on Monday withdrew its $2.66 billion, $40 per share unsolicited offer for Diebold Inc., the world's third-largest ATM manufacturer based on 2007 shipments. George David, United Technologies chairman, said the Hartford, Conn.-based company dropped its bid because Diebold's board repeatedly refused to meet with United Technologies. "In light of extended refusals of [United Technologies'] requests for management discussions and due diligence, we are withdrawing our offer of Feb. 29 to purchase any and all Diebold common shares at $40 per share. We had hoped we could negotiate a transaction that would have created substantial value for both your and our shareholders. It's unfortunate that won't happen," David wrote in a one-paragraph letter dated Oct. 13 to John N. Lauer, Diebold chairman. Lauer, however, had another take on United Technologies' decision. "The Diebold board of directors remains confident that the company is on the right path and is encouraged by the continued improvement it has seen in the company's strategic initiatives to gain cost efficiencies and increase profitability," Lauer said in a statement. Diebold's board earlier this year rejected the United Technologies bid, saying it was too low. On Sept. 30, Diebold reported its 2007 earnings, raising its earnings' guidance for 2008 (CardLine, 09/30).
