Zurich: Swiss engineering group ABB said it would not raise a Rs900 ($19.31) a share offer for an increased stake in its Indian subsidiary, part of its plan to boost market share in the fast-growing market.
In May, ABB said it wanted to raise its stake in ABB India Limited to 75% from 52%. The offer constituted a premium of 34% to the closing price of the shares on the day before the deal was announced and valued the transaction at up to $965 million.
“ABB confirmed today that it has decided to retain the offer price of Rs900 per share in connection with the open offer to increase its stake in its Indian subsidiary,” ABB said in a statement on Friday. “The offer ends on July 27, 2010.”
Analysts have been watching the company closely over recent years to see how ABB, whose products include circuit breakers and industrial robots, would deploy a cash pile that had grown to more than $7 billion.
The India deal would be ABB’s second in a month following its acquisition of US software group Ventyx, after being outbid for British power supply systems maker Chloride in late June after a prolonged battle with Emerson Electric.
Shares in ABB were up 0.7% at 1259 GMT, outperforming the STOXX 600 industrial goods and services index.