ABB buying Elsag Bailey

To expand into new markets and strengthen key technologies, ABB announced Oct. 14 plans to acquire Netherlands-based Elsag Bailey Process Automation N.V. In agreements signed with Elsag Bailey and its owner Finmeccanica SpA, ABB will offer about $2.1 billion for all of Elsag Bailey's outstanding common shares and trust originated preferred securities (TOPrS), i...

By Staff November 1, 1998

Zurich, Switzerland To expand into new markets and strengthen key technologies, ABB announced Oct. 14 plans to acquire Netherlands-based Elsag Bailey Process Automation N.V. In agreements signed with Elsag Bailey and its owner Finmeccanica SpA, ABB will offer about $2.1 billion for all of Elsag Bailey’s outstanding common shares and trust originated preferred securities (TOPrS), including about $600 million in debt. The agreement calls for Finmeccanica, the Italian state-owned industrial group, to sell ABB all issued common shares and TOPrS it holds in Elsag Bailey, or about 53% of Elsag Bailey’s outstanding, fully diluted equity. ABB, Elsag Bailey, and Finmeccanica hope to complete the acquisition within five or six weeks.