United Tech makes bid for ATM maker Diebold

PHILADELPHIA (Reuters) - United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz) said on Sunday it made a $2.64 billion unsolicited bid for Diebold Inc (DBD.N: Quote, Profile, Research, Stock Buzz) after trying to hold merger talks with the automatic teller machine maker for more than two years.

United Technologies (UTC), the world's largest maker of elevators and air conditioners, said Diebold would make an "excellent fit" due to its "strong market position, U.S. footprint, and balance between product and service revenues."

"In addition, Diebold will benefit from UTC's international presence and disciplined operating systems."

United Technologies said Diebold told it earlier this month that a merger of the two companies was not in the best interest of Diebold shareholders. Diebold could not be immediately reached for comment on Sunday.

"Failing an ability to engage in discussions with Diebold's board and management, we believe it is in your shareholders' interests to know of this proposal," United Technologies said in a letter to Diebold.

The $40-per-share cash offer marks a 66 percent premium to Diebold closing stock price of $24.12 on Friday on the New York Stock Exchange. Based on Diebold's roughly 66 million shares outstanding as of May 7, the deal is valued at $2.64 billion.

United Technologies said a higher offer could emerge, depending on any additional value it found in Diebold during a review of its books. It said it could begin due diligence immediately and believed a definitive deal could be reached within 30 days.

United Technologies said it would finance the deal with its current cash balances and other "readily available" sources of funds. It said its legal counsel saw no regulatory hurdles to a deal.

(Reporting by Jessica Hall; Editing by Braden Reddall)

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