Maytag to Consider New Bid by Whirlpool

Maytag Corp. said Sunday that it would consider a sweetened offer from Whirlpool Corp., reopening the bidding contest four weeks before holders were to vote on the company’s sale to a private group.

Whirlpool, the largest U.S. appliance maker, will be furnished financial information to shape its formal bid, Newton, Iowa-based Maytag said in replying to an $18-a-share offer Whirlpool made late Friday. Maytag, the third-largest U.S. appliance maker, had rejected Whirlpool’s bid of $17 a share in cash and stock the day before.

Maytag said its decision didn’t allow a group led by Ripplewood Holdings to cancel its agreement to buy Maytag for $14 a share in cash. Whirlpool is vying for brands including Jenn-Air and Amana that would give it almost half the U.S. market for washers, dryers, refrigerators and ovens.

“I think by going to $18 Whirlpool indicated they’re very, very serious about this,” said Longbow Research analyst David MacGregor, who’s based in Independence, Ohio. Ripplewood probably won’t respond until Whirlpool firms its bid, he said.

Maytag affirmed its support for the sale to New York-based Ripplewood, on which shareholders are scheduled to vote Aug. 19. Whirlpool had set a deadline of 6 p.m. New York time Sunday for Maytag to reply to its sweetened bid so that inspection of its books might begin today.

Maytag said Sunday that it wouldn’t share “competitively sensitive information” until Whirlpool gave a clearer picture of the stock portion of the offer, how it would address antitrust concerns raised by a combination of the rivals and when the transaction could be completed.

Whirlpool spokesman Steve Duthie, when asked about these caveats, said, “It behooves us to fully analyze their response.”

Ripplewood spokesman Jeffrey Taufield declined to comment.

Maytag shares rose 55 cents to $16.20 on Friday.