Will Air Products Make Another Bid For Airgas? (APD, ARG)

The next step in Air Products and Chemicals (NYSE: APD) takeover bid for Airgas (NYSE: ARG) may happen as Airgas reports earnings today and beat analyst estimates.

Air Products offered $70 per share in its last takeover bid for Airgas in what has become one of the most epic takeover battles in the stock market. Air Products has been trying to steal AirGas for what AirGas considers "unreasonable" prices for several months, slowly upticking its bid in the hopes that shareholders will concede. Air Products' last offer, for a total of nearly $5.9B dollars, is the last offer on the table. That bid is now scheduled to expire at midnight on February 4, 2011.

Indeed, Air Products has said its last bid was its "best and final" offer; but Airgas reported better earnings today, and, well, Air Products may yet change its mind... again. Airgas reported strong Q3 EPS of $0.80 vs. $0.79 Street estimates, with revenues of $1.03B versus $1.03B estimates.

Air Products reported EPS at $1.35 this morning, slightly above the analyst-predicted $1.34. Air Products' revenue rose to $2.39B, above analyst predictions of $2.35B.

The bidding battle between Airgas and Air Products began over a year ago and has been public knowledge since February 2010.

In December 2010, Air Products raised its bid for Airgas by 6.9% to the current offer of nearly $5.9B dollars, or $70/share. Airgas' Board of Directors, however, unanimously denied the takeover offer, recommending stockholders not tender any shares.

In a press release on December 22, 2010, the board stated that, "the $70 per share offer is clearly inadequate and that the value of Airgas in a sale, at this time, is at least $78.00 per share, in light of the Board's view of relevant valuation metrics."

The two companies are in the midst of proceedings in Delaware Chancery Court regarding Airgas' shareholder-rights plan, commonly known as a "poison pill". If the judgment finds in Airgas' favor, the hostile takeover bid will be effectually silenced.