Moody's may downgrade Linde

Moody's Investors Service said it placed Linde AG and Linde Finance BV's A3 senior unsecured debt, Baa1 senior subordinated long-term debt and Prime-2 short-term debt ratings on review for possible downgrade.

The rating review was prompted by Linde's approach to take over The BOC Group plc for 1,500 pence per BOC share, which values BOC at £7.5 billion.

Moody's said its review will take into consideration the extent to which an all-cash offer at this price or higher will result in substantially higher leverage, the risks related to the transaction and future integration of such a sizeable acquisition and the risks related to a potential change in Linde's underlying business mix and the overall future strategy of the enlarged group.

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