UTC pulls back from bid to buy Diebold

Diebold says that profitability drivers are in place to create stockholder value


Diebold released a statement on Monday indicating that the company has learned that United Technologies Corporation (UTC) has withdrawn its unsolicited bid. The UTC bid to buy Diebold had been originally offered on February 29, 2008, and had been valued at close to $3 billion.

UTC is a conglomerate made of a number of companies in the building systems, industrial, automation, aviation and fire/security markets. Companies like Lenel, Red Hawk, Chubb, Kidde, Marioff and Onity are part of the UTC Fire & Security division. Like UTC, Diebold is significantly involved in a number of businesses, including the security sector. Besides a strong presence in physical security and systems integration, Diebold also has strong positioning in the banking/ATM market and election systems.

Diebold's Non-Executive Chairman of the Board John Lauer issued the following statement upon learning that UTC had released a public withdrawal of its unsolicited bid:

"The Diebold board of directors remains confident that the company is on the right path, and is encouraged by the continued improvement it has seen in the company's strategic initiatives to gain cost efficiencies and increase profitability. This gives the board confidence that Diebold is on-course for creating substantial shareholder value for its investors, despite current global financial market conditions."

Diebold noted also that it had recently increased its 2008 earnings expectations on Sept. 30, 2008

"Since 2006, we have focused on putting the right leadership in place, improving the key drivers of profitability and positioning the company for future growth," added Thomas W. Swidarski , Diebold president and chief executive officer, in a statement issued to the media and investors. "We are now seeing the tangible results of these efforts. Recognizing there's much more for us to accomplish, I am increasingly confident in our strategies and our ability to execute on those strategies."