America's UTC gets Kidde for £1.44bn

FIRE extinguishers maker Kidde has fallen to US giant United Technologies Corporation after finally agreeing to a 165p-a-share bid valuing the company at £1.44bn.After weeks of wrangling in which the offer has been taken right to a Takeover Panel-imposed deadline, Kidde's board - which had previously signalled a 160p offer was much too low - today recommended the Americans' offer after agreeing UTC would hand out for an extra 2p dividend sweetener to Kidde shareholders.

UTC is effectively reassembling the old Williams Holdings conglomerate. Kidde and security group Chubb were demerged out of Williams in 2000, the latter being bought by UTC last year. UTC is assembling an impressive array of office and factory support systems products.

'With Otis elevators, Carrier [air conditioning] and Chubb we already have a pervasive presence in buildings worldwide,' said UTC chairman and chief executive George David. 'Kidde's industrial fire protection and suppression products will further augment this presence.'

The offer represents a 34% premium to the shares before UTC showed its hand in October. Kidde shares leapt to 170p after the initial interest but have been lower in recent days, opening today at 159p, suggesting the market did not believe Kidde's board, under Norman Askew, would give in to UTC's advances.

The shares, floated four years ago at 69½p, have broken through 100p only in the last 12 months.