Danfoss offers to buy out Sauer-Danfoss for $49 per share
Nov 28 (Reuters) - Danish industrial group Danfoss A/S plans to acquire the about 24 percent stake in Sauer-Danfoss it does not already own in a deal valued at about $580 million.
The offer price of $49 per share represents a premium of 24 percent to Sauer-Danfoss' Tuesday close, Danfoss said in a regulatory filing.
Shares of Sauer-Danfoss rose to a high of $52.70 on the New York Stock Exchange, indicating investors were expecting a higher offer.
The offer values Sauer-Danfoss at $2.37 billion. The company had a market capitalization of $1.91 billion before Wednesday's gains.
Danfoss said in a letter to the Sauer-Danfoss board that it was hopeful discussions between the two boards could begin promptly, leading to a friendly deal by year end.
Danfoss, which makes mechanical and electronic components for several industries, said it has no interest in selling all or any part of its stake in Sauer-Danfoss.
Ames, Iowa-based Sauer-Danfoss makes engineered hydraulic and electronic components like hydrostatic transmissions, orbital motors and steering components.
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