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Bulletin: Swiss Power And Automation Engineering Company ABB Ltd. Ratings/Outlook Unchanged Re Purchase Of U.S.-Based Baldor Nov 10
Standard & Poors, Nov 2010
Abstract
MILAN (Standard & Poor's) Nov. 30, 2010--Standard & Poor's Ratings Services said today that its ratings and outlook remain unchanged on Switzerland-based power and automation engineering company ABB Ltd. (A/Stable/A-1) following the company's announcement that it will buy 100% of U.S.-based Baldor Electric Co. (BB-/Stable/--) for a total consideration of about $4.2 billion. The acquisition will strengthen ABB's business position in North America in automation solutions--namely industrial motion--thereby improving ABB's access to the industrial customer base in the region. We understand that the company will likely complete the transaction in the first quarter of 2011. Consequently, its abundant cash position will shrink substantially, though to a level still well in line with the current ratings. We anticipate that ABB will...
Companies mentioned in this report are: ABB Ltd.,Baldor Electric Co.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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