Earlier today, Airgas, Inc. sent a letter in response to Air Products’ revised tender bid. The correspondence was sent by John van Roden, Chairman of the Airgas Board, on behalf of all the members of the Board of Directors.
Within the letter, Airgas articulated its belief that, “the current Air Products offer of $65.50 per share is grossly inadequate.” The Firm quoted its recent Q2 earnings report, Van Roden stated, “In light of Airgas’ strong performance, outstanding prospects, and unique industry position, as well as the enormous financial benefits to Air Products of an acquisition of Airgas, the current offer price is not close to the right place for the sale of the Company.”
Neverthless, the document did indicate that Airgas would not completely discount further offer revisions. “Each member of our Board believes that the value of Airgas in any sale is meaningfully in excess of $70 per share. We are writing to let you know that our Board is unanimous in its willingness to authorise negotiations with Air Products if Air Products provides us with sufficient reason to believe that those negotiations will lead to a transaction at a price that is consistent with that valuation.”John van Roden’s correspondence signed off, “Very yours truly” in an equally ambiguous manner.
BofA Merrill Lynch and Goldman, Sachs & Co. continue to serve as financial advisors, while Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Airgas and its Board of Directors.