Haier Group, China's largest appliance maker, is dropping out of the bidding race for appliance maker Maytag, a source close to the deal says.
Haier's decision to withdraw comes as Maytag's rival Whirlpool prepares a $US17 ($NZ25.52) a share offer for the company.
Whirlpool has an alliance with Fisher & Paykel Appliances in the US.
A group of investors led by private equity firm Ripplewood Holdings has a $US14 a share offer for the company currently in place.
Haier, together with private equity firms Bain Capital and The Blackstone Group, had indicated to Maytag that they were interested in offering $US16 a share for the company.
The group, which was expected to decide whether to submit a formal bid within the next few weeks, has withdrawn from the bidding, the source said. In May, Ripplewood submitted its bid for Maytag after a year of takeover talks with the company.
A month later, the Haier group said it was considering a rival bid, with their due diligence expected to end in late July or early August.
Whirlpool submitted its surprise offer on Sunday, setting off the possibility of a three-way bidding war.
- NZPA
Whirlpool offer makes Haier drop Maytag bid
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