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Maytag Rebuffs Whirlpool Offer

7/22/2005 10:06:00 AM Eastern

Newton, Iowa – Maytag’s board Thursday rejected Whirlpool’s unsolicited offer to acquire the ailing appliance manufacturer for $1.33 billion, and said it continues to support Ripplewood Holding’s initial $1.13 billion bid.

Haier Drops Maytag BidBenton Harbor, Mich. — Haier America Trading dropped its bid on July 20 for Maytag in the wake of Whirlpool’s surprise $1.33 billion offer to acquire the ailing appliance giant.

In a statement, Maytag said its board was “unable to determine” that Whirlpool’s proposal “may reasonably be expected to lead to a financially superior transaction that is reasonably capable of being completed” – which is a prerequisite for considering rival offers under its existing agreement with Ripplewood.

Maytag said its board would continue to evaluate Whirlpool’s proposal.

During a second quarter conference call this morning, Maytag chairman Ralph Hake told analysts “While there is uncertainty of our future ownership, we remain focused on running a better business.”

Whirlpool said it is “disappointed” with Maytag’s decision and is “evaluating all of our various options,” which it is prepared to pursue “in an expeditious manner.”

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