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Emerson Plans Measures to Reach Peace With D.E. Shaw

Scott Deveau

(Bloomberg) -- Emerson Electric Co. is expected to announce measures Tuesday aimed at striking a truce with investor D.E. Shaw & Co., which has pushed for a breakup of the automation-equipment manufacturer, according to people familiar with the matter.

Emerson Electric is expected to appoint to its board Mark Blinn, the former chief executive officer of Flowserve Corp., said the people, asking not to be identified because the matter is private. Blinn was among four possible board candidates D.E. Shaw had put forth, the people said.

The company is also expected to announce that it will complete its strategic review by early next year, the people said. It will also review its corporate governance, they added.

Emerson rose 2% in trading Monday to close at $73.22 in New York, giving the company a market value of about $45 billion.

Emerson Electric, based in St. Louis, is expected to announce the measures when it releases its third-quarter results Tuesday, the people said.

Representatives for D.E. Shaw and Emerson Electric declined to comment.

D.E. Shaw disclosed a position in Emerson Electric last month and urged the company’s board to split its business into two units: an industrial automation company and a climate technology-focused company. The moves, combined with other measures including cost cuts, could create more than $20 billion in equity value, the New York-based investor said.

Emerson Electric will carry out a wide-ranging review of its business, the company announced last month. It has underperformed its peers since losing about a third of its sales in a previous restructuring.

(Updates with additional details in paragraph three, share price in paragraph four.)

To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.net

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