Whirlpool Steps Up Offer for Maytag

Whirlpool Corp. moved more aggressively Wednesday to clinch the deal to buy rival Maytag Corp. by raising its offer for a third time to $1.79 billion, or $21 a share.

Including the assumption of $977 million of Maytag debt, the entire deal was valued at $2.7 billion.

The latest offer, a $1-a-share premium to the sweetened bid of $1.62 billion that Whirlpool offered Monday, still consists of 50% cash and 50% Whirlpool stock. The deal also included a $120-million “reverse breakup” fee, which would be paid to Maytag if regulators did not approve the combination.

The latest offer, which expires Aug. 21, represents a 50% premium to the initial bid of $14 a share, or about $1.13 billion, that Maytag received from investment group Triton Acquisition Holding Co. Maytag’s board accepted the all-cash offer May 19, and shareholders were scheduled to vote on it Aug. 19.

Maytag rose 36 cents to $19. Benton Harbor, Mich.-based Whirlpool fell $1.49 to $81.53.

Maytag spokesman John Daggett confirmed that the Newton, Iowa-based company had received the proposal but declined to comment further.

Industry analyst Laura Champine of Morgan Keegan & Co. said the Whirlpool offer came at a time when the Triton group was preparing to raise its offer. Although the offer is expected to be considerably lower than Whirlpool’s, Triton is probably trying to make the case that the Whirlpool-Maytag deal would not gain regulatory approval because of antitrust concerns.

Whirlpool is the biggest appliance maker in the U.S. Maytag is the third-largest.

Triton spokesman Jeffrey Taufield declined to comment.