Eaton's Acquisition Of Cooper Industries Creates Significant Upside Potential
By Robert Broens: Eaton Corporation (ETN) the diversified power management company entered into a definitive agreement to acquire Cooper Industries Plc (CBE). The transaction will increase the capacity and geographical breath of the combined entity focused on power and electrical markets.
Eaton Corporation and Cooper Industries Plc have entered into a definitive agreement under which Eaton will acquire Cooper. The new entity will be incorporated in Ireland in order to achieve significant tax savings. Eaton's current CEO Cutler will become the new chief executive officer of the combined company.Shareholders in Cooper will receive $39.15 in cash and 0.77479 shares in Eaton for each Cooper share they currently own. Based on the closing prices of the 18th of May, shareholders in Cooper will receive $72 per share, a premium of 29% compared to the day before. The $72 offer values Cooper Industries at around $11.8 billion. Under the proposed transaction Eaton'sComplete Story »