Western Resources Makes Hostile Bid for ADT

Western Resources Inc. made a hostile $3.5-billion bid for ADT Ltd., a move designed to make it the nation’s largest provider of electronic security services. Western offered $22.50 a share in cash and stock for the 73% of ADT it doesn’t already own. The offer price was 12% more than ADT’s closing price Tuesday. Topeka-based Western, until recently solely an electric and natural gas utility, is betting that a wider menu of products will help improve profit as well as lure customers from lower-cost power sellers. Western’s shares rose 12.5 cents to close at $31.375. Shares in Hamilton, Bermuda-based ADT rose $3.125 to close at $23.25 on trading of 7.5 million shares, more than eight times the daily average over the last three months. Both trade on the New York Stock Exchange.