UPDATE 2-Sauer-Danfoss agrees to increased offer from Danfoss
* Danfoss offers $58.50/shr for the 24.4 pct it does not own
* Sauer-Danfoss committee recommends offer
* Sauer-Danfoss declares dividend of $0.35/share
March 1 (Reuters) - Danish industrial group Danfoss A/S will take full control of Sauer-Danfoss Inc by acquiring a quarter of the company it does not already own for about $700 million, strengthening its footing in the mobile hydraulics industry.
Danfoss increased its offer to $58.50 per share from $49 per share in November, valuing the maker of engineered hydraulic and electronic components at $2.8 billion.
A Sauer-Danfoss special committee, which was formed after Danfoss' first bid, approved the new offer unanimously.
The offer price represents a premium of 8 percent to Sauer-Danfoss's Thursday close on the New York Stock Exchange and a 49 percent premium to its close on Nov. 27, the day before Danfoss made its initial offer.
Including a dividend of 35 cents per share payable on March 29, Sauer-Danfoss shareholders will get a total of $58.85 per share. Sauer-Danfoss shares rose 9 percent to $58.73 on Friday on the New York Stock Exchange.
Sauer-Danfoss, with 2012 revenue of about $1.9 billion, is one of the top manufacturers of equipment for the distribution and control of power in mobile equipment.
Sauer Inc and Danfoss Fluid Power, then a subsidiary of Danfoss A/S, merged in 2000, creating Sauer-Danfoss. Danfoss then bought a 50 percent plus stake in the combined company in 2008, raising its stake to 75.6 percent in about a year.
Danfoss had tried to buy Sauer-Danfoss for as low as $10.10 per share in 2009, but its attempts were thwarted by the Sauer-Danfoss' board which said the company was worth much more.
The latest deal, which does not require antitrust approval, is expected to close in the second quarter.
Sauer-Danfoss was advised by Lazard, while Citi served as the financial adviser to Danfoss.