United Technologies no longer pursuing acquisition of Diebold

By Lisa Kerner

Charlotte, N.C., Oct. 13 - United Technologies Corp. said it withdrew its offer to buy Diebold Inc. due to Diebold's "extended refusals" of United Technologies' requests for management discussions and due diligence.

On March 2, 2008, United Technologies proposed a $40-per-share cash offer for all outstanding shares of Diebold. It was reported that the offer price was a 66% premium to Diebold's trading price on Feb. 29, 2008.

"We had hoped we could negotiate a transaction that would have created substantial value for both your and our shareholders. It's unfortunate this won't happen," United Technologies chairman George David said in an Oct. 13 letter to Diebold.

Diebold non-executive chairman John N. Lauer said the board "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," according to a company news release.

United Technologies is a Hartford, Conn.-based provider of high technology products and services to the building and aerospace industries.

Diebold provides automated self-service transaction systems. The company is located in North Canton, Ohio.

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