Hardinge Inc rejects Brazilian overtures

The offer is described as "grossly inadequate, opportunistic and not in the best of Hardinge and its shareholders".The Brazilian machine tool builder went public with its offer on 4 February, with a bid amounting to $90 million. In a press statement of 18 February, Kyle Seymour, non-executive chairman of the board, and Richard Simons, president and CEO, said: "We understand why it makes sense for Romi to attempt to acquire Hardinge at the bottom of the economic cycle, and at a time when the economic recovery is in sight (especially since you know the machine tool industry trails broader economic trends). However, we do not believe it is advisable for Hardinge to pursue a sale of the company at this time, and most certainly not for the grossly inadequate price you are offering. Hardinge is well capitalised to emerge from this economic cycle, and is well-positioned to benefit strongly as our industry participates in the global economic recovery." In a response, Livaldo Aguiar dos Santos, chief executive of Romi is quoted, by www.rttnews.com, as saying: "We believe that any objective analysis would clearly confirm that our offer is in the best interests of Hardinge's shareholders, offering them immediate liquidity at superior value. "While we continue to believe a combination makes sense, we have a responsibility to the shareholders of Romi to remain a disciplined bidder, especially in light of Hardinge's earnings announced yesterday. We will study these results, and the long-term trends they reflect, carefully with our advisors." Both Hardinge and Romi manufacture machining centres and turning centres. See original story here Pictured: Hardinge HR760