United Tech Offers $2.63B for Diebold

United Technologies Corp., continuing to broaden its security business and expand its presence in China, said Sunday it has made an offer to buy Diebold Inc. for $2.63 billion.

United Technologies, parent company of jet engine-maker Pratt & Whitney, Otis elevator and Sikorsky Aircraft, said it made the unsolicited offer Friday after trying to negotiate a deal with Diebold for two years.

Diebold, based in Canton, Ohio, makes ATMs, business security systems and voting machines.

The $2.63 billion purchase price represents United Technologies' offer of $40 per outstanding share, about two-thirds higher than Diebold's closing stock price Friday of $24.12. United Technologies said the total enterprise value of the deal was about $3 billion.

"This transaction creates significant and immediate value for Diebold shareholders with no operational risk, while creating long term value for UTC shareholders," George David, United Technologies' chairman, said in a news release.

James Geisler, vice president of finance of United Technologies, said the company announced the offer Sunday night because executives believe their offer is "so compelling we thought shareholders should know about it."

A call seeking comment was left with Diebold.

In a Feb. 21 letter provided by United Technologies, Diebold Chairman John N. Lauer said the board discussed United Technologies' overtures but determined "it was not in the best interests of the corporation or its shareholders to pursue discussions with UTC regarding a business combination with Diebold."