Hey Man,
Yes it is a revenge buy. Not long ago ABB tried to by Chloride at a hefty premium and was blocked by Emerson. Perhaps Emerson paid more of a premium for Chloride than they realized. ABB will still get a UPS company with T&B. But ABB will get much more. ABB now will compete with Emerson in many more segments of the electrical market. If Emerson, Hubbell or Cooper try to buy T&B, they would likely face anti-trust issues. With the FED and US govt working to devalue the dollar we will see more of these buys from foreign firms. While a weaker dollar can help exports, it also makes it easier for firms from overseas to buy US firms and resources. Will a cheap dollar spur more acquisitions by Group Schneider? Can US based firms afford to buy more competitors?
I do wish that I had owned some T&B stock last week. I wonder who made the insider score on that?
cheers
the electricAlan
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