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AlliedSignal goes for the kill
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September 14, 1998: 10:25 a.m. ET
Company amends hostile AMP bid, says 72 % of shares have been tendered
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NEW YORK (CNNfn) - AlliedSignal, the industrial manufacturer that launched a $10 billion hostile bid for cash-strapped AMP, is moving in for the kill.
The Morris Township, N.J.-based company said it amended its offer to buy 40 million shares of AMP at $44.50 cash, whether or not AMP's poison pill is redeemed.
AlliedSignal's previous offer was conditional on AMP's poison pill being redeemed.
In a related statement, AlliedSignal also said Monday that 72 percent of AMP's shares have been tendered by shareholders.
"Acquiring these shares will advance our plan to acquire the remaining shares of AMP as soon as practical," Lawrence Bossidy, AlliedSignal's chairman and chief executive, said.
AlliedSignal last month amended its lawsuit against AMP to challenge changes made to the company's anti-takeover, or poison pill, plan.
The poison pill -- which existed before AlliedSignal's tender offer -- makes it much more expensive for an acquirer to buy more stock in the company after it has acquired a 20 percent stake.
AlliedSignal hopes to take control of AMP's board of directors to force its bid through.
Harrisburg, Pa.-based AMP Inc. urged its stockholders last week not to sell their shares to AlliedSignal, promising the company could improve its earnings and get its own house in order. Apparently, shareholders aren't buying it.
AMP rejected AlliedSignal's $10 billion takeover bid in August. At the time, the $44.50 per share offer represented a 55 percent premium over AMP's trading price.
The economic crisis in Asia, where AMP does much of its business, has crippled the company's trading price.
AMP shares (AMP) closed unchanged Friday at 39 on the New York Stock Exchange.
Shares of AlliedSignal (ALD) were up 1-1/16 at 34-5/8 Monday morning on the Big Board. 
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