Airgas Board Rejects Air Products'' Buyout Offer
Industrial gas supplier Airgas Inc. rejected the unsolicited $5 billion buyout bid from larger rival Air Products and Chemicals Inc., according to the Associated Press. In a letter to Air Products CEO John McGlade, Airgas said the $60 per share offer, as well as an earlier bid of $62 per share, "grossly" undervalues the company. Airgas also noted that, with the current depressed prices for many companies in the market, it is a "terrible" time to sell the business. On Friday, Air Products offered to buy Airgas for about $5 billion in cash, plus assumption of $1.9 billion of debt. A combination of the companies would create one of the biggest industrial gas companies in the world. Air Products sells gasses including argon, nitrogen, hydrogen, helium and oxygen for industrial, medical and other uses. Airgas sells gasses and provides gas equipment, welding products, tools, safety gear and janitorial supplies.