Whirlpool Joins Maytag Battle, Bidding $1.35 Billion for Rival

Whirlpool Corp., the largest U.S. appliance maker, said Sunday that it offered $1.35 billion in cash and stock for Maytag Corp., topping two competing bids for the No. 3 U.S. appliance maker.

Whirlpool said it would pay $17 a share and assume $969 million in debt.

Jeff M. Fettig, Whirlpool’s chairman, president and chief executive, said merging the two companies “fits Whirlpool’s strategy and capabilities, will create strong value for our shareholders and provide direct benefits to consumers and trade customers.”

Whirlpool’s offer tops a $16-a-share bid from a group led by China’s Haier Group and a $14-a-share offer from a consortium led by buyout firm Ripplewood Holdings.

Maytag shareholders are scheduled to vote on the Ripplewood offer Aug. 19. Haier Group and two private-equity firms are taking a closer look at Newton, Iowa-based Maytag before making an official offer.

Whirlpool, which planned a conference call today to discuss its proposal, said it would decide by Aug. 9 whether to make a definitive offer after completing its due diligence.

Morgan Keegan & Co. analyst Laura Champine said an acquisition by Whirlpool would make sense strategically.

“The question I’d have about this particular combination was whether or not they’d run into antitrust issues,” she said in a phone interview from Memphis, Tenn. “From a political standpoint, it’s certainly a more favorable option, if you’re a politician, than combining with a Chinese manufacturer.”

Whirlpool, based in Benton Harbor, Mich., has annual sales of more than $13 billion and 68,000 employees worldwide. The company sells appliances under the Whirlpool and KitchenAid names as well as other brands in more than 170 countries.