News Update: Airgas Rejects Air Products & Chemical's Boosted Offer As "Grossly" Undervalued

Airgas' (NYSE:ARG) board of directors has reportedly rejected Air Products & Chemicals' (NYSE:APD) hostile takeover bid of $5.3 billion, saying it still "grossly" undervalues the company. Air Products said it will continue to ask shareholders to tender their shares and will look to place three directors on the company's board at the next shareholder meeting. The new offer was for $63.50 per share in cash, and was made on July 8th. That bid was an increase of $3.50 over the initial $60.00 offer and a premium of 46% over Airgas' closing price on February 4, 2010, when Air Products launched its initial bid. John E. McGlade, Air Products chairman, president and chief executive officer, said, "We are disappointed that the Airgas Board has once again rejected an all-cash offer at a substantial premium without engaging with Air Products. This latest rejection comes in spite of a materially higher offer representing a 46% premium to Airgas' pre-offer price. We believe Airgas shareholders today face substantially more uncertain market conditions than when we commenced our offer for Airgas in February, and that the certainty of a fully financed all-cash offer at a substantial premium is more attractive than ever before." Air Products' tender offer is scheduled to expire on August 13, 2010.