Diebold board rejects unsolicited offer

Hartford, Conn.-- Diebold Inc.'s board of directors unanimously rejected an unsolicited bid from Connecticut-based United Technology Corp. Monday, calling it "opportunistic."

The U.S. Securities and Exchange Commission is investigating Diebold's financial statements, delaying information their shareholders would need to make an decision, Chairman John N. Lauer said in a statement. As such, he said, "UTC's proposal is an opportunistic attempt to buy Diebold," the Akron, Ohio, Beacon Journal reported.

United Technologies Corp. announced Sunday it has offered $3 billion for Diebold, the manufacturer of voting machines and ATMs.

But Lauer also said the offer undervalued Diebold.

United Technologies first suggested a merger two years ago but was rebuffed. It extended a new offer to buy the company Friday. The offer would give stockholders a 40 percent premium over its closing price Friday of $24.12 a share.

United Technologies quickly issued a statement that it was "disappointed" by the decision.

"This transaction creates significant and immediate value for Diebold shareholders with no operational risk, while creating long-term value for U.T.C. shareholders," George David, United Technologies' chairman and chief executive, said on Sunday.

Copyright 2008 by United Press International.