Whirlpool’s 3rd Bid Accepted by Maytag

Maytag Corp. agreed Friday to a half-cash, half-stock buyout from rival Whirlpool Corp., reversing an earlier recommendation that urged shareholders to accept a New York investment group’s all-cash deal.

Whirlpool, the nation’s leading appliance maker, increased its offer Wednesday for the third time, proposing to buy Maytag for $1.79 billion, or $21 a share.

Including the assumption of $977 million of Maytag debt, the deal values Maytag at $2.7 billion.

The accepted bid is $1-a-share higher than a sweetened offer of $1.62 billion that Whirlpool had made Monday.

As part of the accepted deal, Whirlpool agreed to pay Maytag $120 million if regulators do not approve the combination.

The price that Whirlpool is paying is 50% higher than an 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 Triton’s all-cash offer May 19, and had recommended to shareholders the approval of that deal at an Aug. 19 meeting.

On Friday, Maytag withdrew its recommendation of the Triton deal and postponed the shareholder meeting to Aug. 30.

If the merger agreement between Maytag and Triton is ended, the meeting will be canceled.

Benton Harbor, Mich.-based Whirlpool also has agreed to pay the $40 million that Maytag would be required to pay the Triton group to walk away from that deal.

Institutional Shareholder Services, a shareholder advisory service based in Rockville, Md., concluded in an analysis released Friday that the Whirlpool offer benefited shareholders more.

Triton has five business days to decide whether to increase its offer. Under its agreement, Triton can terminate its merger agreement with Maytag immediately.

Triton was not immediately available to comment.

Maytag shares rose 22 cents, or 1.2%, to $19.01. Whirlpool shares jumped $3.70, or 4.6%, to $84.40.