American Will Discuss Sale to Black & Decker

American Standard Inc., under relentless takeover attack from Black & Decker Corp., said Tuesday that its board will consider selling the company and expects to hold talks with the power toolmaker and others.

In a brief announcement, American Standard said the board had decided to continue the firm’s already announced restructuring but to “pursue other alternatives to maximize stockholder value, including a sale of the company” as well.

The statement by American Standard was the first indication that the larger company was softening its negotiating stance, and indicated that an end to the lengthy takeover battle could be on the way.

The maker of plumbing supplies and Trane air conditioning said it expects to give “confidential information to, and to engage in discussions and negotiations with, Black & Decker and other potential purchasers of the company.”

Budget-Busting Bid?

Since Black & Decker’s initial offer was made in January, American Standard has vigorously opposed any combination of the two firms. American Standard did not indicate who the other potential purchasers might be.

On Friday, Black & Decker raised its offer for American Standard to $2.33 billion--its fourth sweetened bid--just hours after American Standard had increased its own competing offer to its shareholders.

The American Standard plan, because it will pay its shareholders a combination of cash, debt and one share of the newly restructured firm, is difficult to value precisely but analysts peg its worth at just over $2 billion.

Stock market analysts say Black & Decker’s latest $73-a-share bid--up $17 a share, or more than half a billion dollars over its original offer--is near the upper end of American Standard’s value and could strain the debt load the toolmaker will have to take on to pay for the acquisition.