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Investing

Airgas Wants More From Air Products (ARG, APD)

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By Douglas A. McIntyre Updated Published
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After the Airgas, Inc. (NYSE: ARG) unsolicited offer from Air Products & Chemicals, Inc. (NYSE: APD) was made, we noticed how there was a premium to the deal’s public price.  We even noted that Jefferies had given a potential scenario of $68.00.  Now we know why rather than just suspect why.   Airgas’ Board of Directors announced that the Air Products’ February 5 proposal AND the previously rejected $62 per share offer grossly undervalue Airgas.  Based upon how the release was handled this week and based upon the news reports, it seemed that this first denial of an offer was certain.

The company laid out the reasons why the company is worth more, but if you have seen friendly mergers and hostile mergers you already know many of the reasons.  Besides that, it is the duty of a company to secure more in a buyout if possible or likely.  Airgas shares closed up 1.3% at $61.35, but the stock is down 1.3% at $60.55 in the after-hours session.

Our own take here from watching other mergers is that Airgas will get a second offer from Air Products.  The company even noted that it has tried to make more interest and noted that it would make certain separations if needed for regulatory purposes.  Another offer of $64.00 or $65.00 may come back to the company.  Guess what the all-time high was… $65.45, in June-2008.  If Air Products & Chemicals really is genuine, they’ll be back.

JON C. OGG

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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