UPDATE 2-UK’s Chloride says no word from Emerson re approach

* Pretax profit 41.4 mln stg vs Reuters consensus 38.7 mln

* Starts year with record order book of 160 mln stg

* FD says heard no more directly from Emerson

* Shares up 1.1 percent

(Adds FD comments, shares)

By Victoria Bryan

LONDON, May 24 (BestGrowthStock) – Britain’s Chloride Group Plc
(CHLD.L: ) reported full-year results at the top of expectations
and said it had heard nothing more from Emerson Electric Co
(EMR.N: ) following the U.S. group’s bid approach last month.

The power supply company, whose clients include the likes of
HSBC (HSBA.L: ), IKEA and Sainsbury’s (SBRY.L: ), did not once
mention Emerson’s 723 million pounds ($1 billion) approach in
its results statement on Monday.

“The only thing I can tell you is that we’ve heard no more
directly from them,” Finance Director Neil Warner told
reporters.

Analysts said the ball was in the court of Emerson, whose
cash approach was worth 275 pence per Chloride share.
[ID:nLDE63P06M]

“We expect the starting point for a successful offer from
Emerson now to be substantially above 300p, which will test the
latter’s resolve,” Michael Blogg at brokerage Arbuthnot wrote in
a research note.

“Emerson may need Chloride to fill a gap but Chloride does
not need Emerson,” Blogg added.

Chloride said it had started the new year with a record
order book of 160 million pounds after posting adjusted pretax
profit for the year to end-March of 41.4 million pounds.

Analysts had expected the group to report an adjusted pretax
profit of 38.7 million pounds, with estimates ranging from 36.9
million to 40 million, according to Thomson Reuters I/B/E/S.

“Results were at the top end of expectations after a
stronger than expected fourth quarter,” Warner said.

He added the group was seeing a return to growth in the
commercial sector, which had not performed as well as its energy
and infrastructure business during the downturn.

In contrast to Chloride, Emerson missed expectations for its
latest quarter and said recovery was uncertain. [ID:nN04256752]

Chloride also said it would increase its full-year dividend
by 11 percent to 5.2 pence per share.

Its shares were up 1 percent at 287.3 pence at 0739 GMT, off
a high of 300 pence touched following the Emerson approach, and
valuing it at about 747.5 million pounds.

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(Editing by Lorraine Turner and David Holmes)
($1=.6959 Pound)

UPDATE 2-UK’s Chloride says no word from Emerson re approach