Is the Maytag deal underpriced?

There's talk of an outside bidder, with Electrolux mentioned as a possibility, even as one arbitraguer calls the $14/share offer 'thievery'. This could get interesting.

Usually, the incumbent buyer has an advantage, but in this case it's not so definite: Ripplewood Holdings is, as far as shareholders are concerned, a package of assets, a couple money managers, and a cheesy name. Someone like Electrolux has the advantage that theyr'e seen as a business, not a money-management vehicle -- and as the Qwest/MCI/Verizon merry-go-round demonstrated, investors put a lot of thought into what happens to the companies they sell, whether or not that nets them the best deal.

This blog is no longer being updated. Visit ByrneHobart.com for more blogging, or pay a visit to my new Internet stock research and M&A due diligence company.

posted by Byrne Hobart at 3:06:00 PM


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