Emerson Said Set to Reveal $7 Billion National Instruments Bid

Emerson Electric Co. is planning to reveal a takeover offer for National Instruments Corp. valuing the maker of measurement systems at around $7 billion, people familiar with the matter said.

(Bloomberg) — Emerson Electric Co. is planning to reveal a takeover offer for National Instruments Corp. valuing the maker of measurement systems at around $7 billion, people familiar with the matter said.

St. Louis, Missouri-based Emerson is set to go public with its bid of about $53 per share as soon as Tuesday, according to the people, who asked not to be identified discussing confidential information.

Emerson has been pursuing NI for months, the people said. The decision to go public with its offer may be a prelude to a hostile takeover, a move that would require Emerson to nominate alternative directors to NI’s board.

NI said Friday it was exploring strategic options including a sale after receiving approaches from potential buyers it didn’t identify. Shares of NI soared 17% in New York trading Friday to $46.97, giving the company a market value of $6.1 billion.

The Austin, Texas-based firm also said it will adopt a limited-duration shareholder rights plan, to expire in about one year. These plans, known as poison pills, are a defensive tactic for keeping potential acquirers at bay by preventing them from building large stakes.

An offer of $53 per share would represent a 32% premium to NI’s closing share price the day before the strategic review was announced.

Deliberations are ongoing and no final decisions have been made, the people said. Representatives for Emerson and NI couldn’t immediately be reached for comment outside normal business hours.

NI provides testing and measurement equipment and software. In recent years, it’s expanded its portfolio through acquisitions into solutions for electric vehicles, batteries and driver-assistance systems. The company is working with Bank of America Corp. and Wachtell Lipton Rosen & Katz on the strategic review.

–With assistance from Trista (Xinyi) Luo.

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