Business & Tech

Air Products: 'We Welcome New Investors'

Reports state that billionaire William Ackman's Pershing Square Capital Management LP's hedge fund has amassed a 9.8 percent stake in Air Products and might attempt a takeover.

Air Products of Trexlertown, in a press release, responded to billionaire William Ackman's Pershing Square Capital Management, which has amassed 9.8 percent of the company's stock, according to Bloomberg BusinessWeek.

"Air Products maintains an active dialogue with and carefully considers the views of its shareholders. The Company has not been contacted by Pershing Square Capital Management but welcomes new investors and looks forward to engaging with Pershing Square to understand its views. In keeping with its long-standing practice, Air Products will thoroughly review constructive input from shareholders as part of its commitment to increasing shareholder value," the press release said.

Pershing Square Capital Management's hedge fund spent $2.05 billion on its stake in the company, according to the Bloomberg BusinessWeek article. Based on that valuation for 9.8 percent, Air Products' total value is about $22 billion.

Last week, the company said it was putting shareholder rights plan in place, which is designed to not allow any shareholder to amass too much of Air Products' stock. This is commonly referred to in the industry as a "poison pill."

"Air Products has observed unusual and substantial activity in the Company's shares. The Board of Directors believes that the Rights Plan will help promote the fair and equal treatment of all stockholders of the Company in the event of an accumulation of a substantial block of the Company’s shares and ensure that the Board of Directors remains in the best position to discharge its fiduciary duties to the Company and its stockholders. The Rights Plan has not been adopted in response to any specific takeover bid or other proposal to acquire control of the Company," the release said.

The Bloomberg BusinessWeek report states that a clash between Ackman's hedge fund and Air Products management is likely.

At 1 p.m. Wednesday, Bloomberg quoted Air Products stock at $109.55 per share, which is up 39.75 percent year-over-year.

Air Products, on its website, says it employs more than 20,000 employees and operations in more than 50 countries, serving customers across a wide range of industries from food and beverage, health and personal care to energy, transportation and semiconductors. The company supplies a unique portfolio of atmospheric gases, process and specialty gases, performance materials, equipment and services.
 


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