UTC makes bid for Diebold

United Technologies Corporation (UTC) has proposed to acquire Diebold for roughly $3 billion, at a per share rate of $40.

The company announced this morning that it had made the proposal to Diebold's board of directors; UTC said the proposal "represents a premium of approximately 66 percent to Diebold's closing stock price on Feb. 29."

According to a letter that was sent to John Lauer, chairman of the board for Diebold, from UTC's Chairman and CEO George David, UTC has been attempting to engage Diebold in acquisition talks for two years. In David's letter, he indicates that previous dicussions with the Diebold board had not been promising and that Lauer had requested that David not engage the Diebold board in acquisition talks.

"Failing an ability to engage in discussions with Diebold’s board and management, we believe it is in your shareholders’ interests to know of this proposal," wrote David in a letter sent to Diebold and distributed to the media.