Maytag rejects higher bid offer

Some Maytag shareholders feel Ripplewood's offer is too low

Maytag, the US firm behind the Hoover vacuum cleaner, has said it will continue to back a $1.13bn (£645m) bid from private equity group Ripplewood.

The decision comes despite a higher $1.3bn (£800m) takeover offer from US appliance maker Whirlpool.

Maytag said it had been unable to determine if Whirlpool's offer would result in a better deal for the firm.

Ripplewood tabled its bid in May, but some Maytag shareholders have argued the offer is too low.

Maytag said it would continue to study Whirlpool's $17-a-share offer which was made earlier t his week.

Earnings hit

Last month, China's biggest appliance maker, Haier, dropped out of the bidding race for Maytag.

Maytag owns a number of well-known brands, selling goods under the Amana, Jenn-Air, Jade and Dixie-Narco brand names, as well as making Hoover products.

However, earnings at the company have suffered recently as competition in the industry has risen and raw material costs have climbed.

Despite Maytag's announcement, Whirlpool - which is the largest US appliance maker - said it would continue to push for a deal.