This Could Be the Next Industrial Activist Target

Cracks are forming around Rockwell Automation Inc.'s steely exterior, and activist investors may soon take notice. Six months ago, the maker of factory-automation tools was enjoying a record stock price and spoke with a swagger as it rejected a series of takeover bids from Emerson Electric Co. At the time, Emerson's pursuit seemed overly ambitious and its final $29 billion bid would have required a major increase to its debt load. Rockwell’s performance since Emerson abandoned its hunt in November has hardly been disastrous, but any kind of decline is out of the norm.