Amp Inc., a manufacturer of fiber optic connectors based in Harrisburg, Pa., has rejected a $9.8 billion takeover attempt by AlliedSignal Inc. of Morris Township, N.J. Despite the rejection, AlliedSignal's chief executive officer, Larry Bossidy, said his company would continue to pursue the acquisition. AlliedSignal, which manufactures advanced electronics and aviation systems, offered shareholders $44.50 per share, representing a 55 percent premium over the $28 per share Amp was trading for the day before the offer.
The takeover bid comes after several difficult years for the connector giant. Since 1995, Amp has seen several reorganizations, leadership changes and sagging profits. Analysts remain divided, however, on whether AlliedSignal eventually will prove successful in its bid.