Maytag Merger - Let's watch this for a month

[mayken4now]

Maytag Merger

On December 22, 2005, Maytag shareholders approved the proposed merger with Whirlpool. Completion of the proposed merger remains subject to regulatory clearance. To facilitate the review by the Antitrust Division of the Department of Justice of the proposed merger, Whirlpool and Maytag agreed not to close the deal before February 27, 2006, without getting the Antitrust Division’s OK – and the Antitrust Division may request additional time for the review.

Whirlpool and Maytag say they are working closely with the Department of Justice.

Fettig said today that he still expects to close on the Maytag merger in the first quarter of 2006. "We believe that the combination will create substantial benefits for consumers, trade customers and our shareholders,” he said. “This transaction will translate into better products, quality and service, as well as other efficiencies that will allow us to offer a more competitive, wider range of products to a much broader consumer base.”

Steve

 

[bobbyderegis]

Better Products, Quality and Service?

HAHAHAHAHAHAHAHAHAHAHAHA!
Bobby in Boston

 

[swestoyz]

On the radio today, it was noted that a pack of folks from Newton met with Whirlpool execs yesterday. They said the 2 hour meeting went well, but how bad could a meeting go when Whirlpool had to listen the entire time and nod while the Newton folks laid down what they expect? LOL

People from Newton included Maytag employees and execs, and even the Mayor of Newton was included in these meetings.

Ben

 

[portendere]

Maytag may sell Hoover unit

So, after having done their best to eliminate all of Hoover's assets (by closing lines, laying off employees, and "consolidating" the North Canton operations in Newton) and to destroy Hoover's brand name (by introducing a line of low-quality, low-cost vacuums and (surprise!) seeing Hoover's market share drop...Maytag decides to sell it off?

Thanks, guys...thanks.

http://money.excite.com/ht/nw/bus/20060203/hle_bus-wen9780.html

 

[drmitch]

Maybe they will bring back lighted control panels!

 

[gansky1]

I find it curious that Maytag is "considering" selling Hoover off to probably a communist government but then talk of it's merger with Whirlpool on the other side of Dependability Square as if the two are unrelated. I suspect Maytag is taking some direction from their suitor already.

 

[sudsmaster]

I think it's quite possible that the merger will help both companies produce better products. For example, Maytag has the patent on the Neptune style electronic control panel, ala 7500 - which is probably why it's not found on any other mfg's machines. Think about how nice it would be to have a Duet with a full LCD control panel, where any number of options could be selected and stored in any number of custom favorites selections. Or where tub water temp, rpm, and plain english error code messages could be retrieved with the push of a few buttons.

Conversely, Whirlpool makes the most energy-efficient compressor-style refrigerators on the market. And it certainly has the global reach and manufacturing muscle to straighten out Maytag's profitability issues. And both companies have had more than their share of laundry failures - the early Neptunes and the ill fated Calypso. Perhaps they can learn from each others' mistakes and put together a "GE Killer", LOL.

As for Maytag declining to associate the reported sales of the Hoover division with the pending merger - that may well be part of the a general legal requirement to maintain two completely separate corporate entities until the merger is approved. I'm not aware that Whirlpool owns any vacuum cleaner brand(s), so the sale wouldn't then be expected to enhance (or diminish) the chances of passing the Justice Dept's anti-trust litmus test.

I personally hope that Whirlpool will maintain the Maytag name on at least some washers. After all, they did that with Kitchenaid.

 

[mayken4now]

I agree sudsmaster. Let's give them a chance come March, and just see what will transpire in the next year.

Have to be a beliver I guess.

Steve

 

[sudsmaster]

Maybe they will bring back lighted control panels!

Maytag already did that, with the Neptune 7500 LCD control panel.

I'll have to shoot a photo of it at night, in a darkened room.

Not quite like the jukebox-light control panels of the 50's and 60's, but still better than the usual braille display.

 

[wiskybill]

Still more to this story...

Headline today in the Canton newspaper, The Repository; "Maytag wants to sell Hoover, but Whirlpool holds the cards"

According to the article, Ralph Hake can't sell Hoover, or any other division of Maytag for the same reason: the merger with Whirlpool, which has a firm $1.7 billion offer in place that includes all of Maytag's major assets.

It also states;
"Still, minutes after Hake made his surprise announcement,in a teleconference Friday, Whirlpool issued a strongly worded statement from it's chairman and chief executive officer, Jeff M. Fettig, that no sale was going through without his company's permission.
"Under the framework of the merger agreement, we have the right to approve the sale of significant assets by Maytag, including these businesses," Fettig said."
Whirlpool said it "looks forward to reviewing any proposals Maytag may present, within the framework of our merger agreement," and would make no further comment.

It sounds like there is still quite a bit more to this posturing on Maytag's part than is being told right now. Time will tell.

Bill...