Emerson makes hostile bid for National Instruments, says Deutsche Bank

Deutsche Bank analyst Nicole DeBlase tells investors in a research note that shares of Emerson Electric (EMR) reacted negatively to the news that it has made a bid for National Instruments (NATI) for $53/share in cash, likely related to the multiple paid and hostile nature of the bid. The analyst, who made no change to the firm’s Hold rating or $94 price target on Emerson shares, says that while the deal would be "obviously accretive," the multiple seems expensive and clearly does not fully plug the ~$1.56 EPS hole created by the divestitures of Insinkerator and Climate.