Engineering company Emerson (EMR) announced today that it has reached an agreement with Avocent Corporation (AVCT), which provides IT infrastructure management solutions, that will see it acquire... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

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Tuesday October 6, 2009

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Emerson (NYSE: EMR) and Avocent Corporation (NASDAQ: AVCT) today announced they have reached agreement for Emerson to acquire Avocent, a transaction that will further Emerson’s ability to deliver total infrastructure management solutions to its data center customers around the world. The Avocent Board of Directors unanimously endorsed the terms of an all-cash tender offer of $25 per share, or approximately $1.2 billion. The purchase is expected to close around January 1, 2010, pending customary regulatory approvals and acceptance of

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div style="text-align: justify;"Merrill Lynch/BAC is upgrading span style="font-weight: bold;"Emerson (NYSE:EMR)/span to Buy from Neutral while establishing a whopping $50 tgt on the name (vs. prev. $32 tgt)br /br /span style="font-weight: bold;"Lagging share price creates opportunity/spanbr /EMR has significantly lagged its industrial peers during this recent rally – Merrill thinks driven by concerns that trough earnings for Emerson occur much later than other perceived shorter cycle plays. However, they think earnings for most industrials are likely to trend lower in 2010, which they think puts EMR on more of a comparable footing to close the performance gap with other industrials.br /br /span style="font-weight: bold;"Emerson business outlook appears to be turning higher/spanbr /Firm thinks the outlook for Emerson’s business, on average, has also begun to turn up. For instance, Emerson has the largest direct exposure to China at ~9% of revenues. Roughly 75% of the company’s products are estimated to be tied ...