Aga takeover deal due to be sealed

Illinois-based Middleby launched its bid to acquire the range cooker manufacturer earlier this year, but bigger American kitchen equipment giant Whirlpool made an 11th hour approach a fortnight ago.

Aga's directors decided to go ahead with the formalities of the Middleby deal, but left the door open to Whirlpool – a $20bn a year business with 100,000 workers worldwide – to come in with a better offer.

The takeover panel – which guards the interests of shareholders in such a deal – had only given Whirlpool until today to submit an offer.

Instead, over the weekend less than an hour after the stock market had closed for the day, Whirlpool revealed it was walking away. In a brief statement to the City it the company said: "Whirlpool announces that, after full and careful consideration, it does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of Aga."

Last week a meeting of Aga's shareholders agreed to the Middleby takeover, with 86.4 per cent of shareholders lending their backing to the deal at a specially-organised general meeting.

That move will be legally ratified at a special hearing tomorrow. In a formal statement about the general meeting, Aga said: "The scheme was approved by the scheme shareholders at the court meeting and the special resolution to authorise the directors of the company to take all such action as they may consider necessary or appropriate for carrying the scheme into full effect, and to amend the articles of association, was passed at the Aga general meeting."

Workers at Aga's two Telford plants, in Ketley and Coalbrookdale, will now see the company pass into American ownership. It employs 300 people at its assembly plant in Ketley, where it also designs models of the historic oven, as well as 120 at its foundry in Coalbrookdale, in which the firm invested heavily last year.

The Whirlpool interest, and the prospect of a lucrative bidding war for the Leamington Spa-based range cooker business, has sent shares in Aga rising to 210p each by Friday, compared to Middleby's 185p per share offer for the company.

That share price was expected to drop sharply in trading today. Aga's share price, which rose to 210p, is set to fall today.