UPDATE 1-Danfoss offers to buy out Sauer-Danfoss for $49 per share

Wed Nov 28, 2012 5:14pm EST

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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 closed at $52.72 on the New York Stock Exchange on Wednesday, indicating investors were expecting a higher offer.

In a statement issued later in the day, Sauer-Danfoss said its board has established a special committee to consider the 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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