The company also called this opportunistic as Air Products is trying to obtain the future value of Airgas at a bargain basement price and that this point of the business cycle is the wrong time to sell the company. Airgas has further noted that believes the offer is highly likely to be “subject to substantial delays related to U.S. antitrust clearance” and that a failure to commit to make the necessary divestitures and a failure to obtain antitrust clearance heighten the concern over regulatory risk and delay.
Further noted was that the numerous conditions of the offer create significant uncertainty and risk as to whether the offer can be completed and the timing for completion. The company even goes on to allege that Air Products’ acquisition of Airgas will likely reduce value and that Air Products has a poor acquisition track record, little experience relevant to Airgas’ business and more.
In short, Airgas is not just vying for a slightly higher offer. The company is either going to demand a much higher price or risk a go-it-alone strategy. In driving they call this a game of chicken. In M&A, it is more like poker.
JON C. OGG
FEBRUARY 19, 2010
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