Air Products is OVERPAYING and the stock price reflects it. Why do acquiring companies insist on destroying shareholder value. Why couldn't Air Products just go hostile on them and take them out at lower price. This is wrong.
I'd say there is a degree of overprice, but is it worth the billion dollars? Tine will tell.
It seems this concensus of the market. APD was down about $5 or $1.3 billion for their 260 million shaers. ARG was up about $15 or $1.2 billion for their 80 million shares. Thus this is a transfer of wealth from APD to ARG shareholders. The question, of course is will APD reap benefits greater than this in the longer run.
Methinks no. ARG is well run, adn APD can add little value to that business. ARG cylinder sales force might add a little to APD's merchant business, but in reality that incement will be tiny.
On the other hand, I think APD was at a bargain price before (and after) this announcement.