Nov 28 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
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
The offer values Sauer-Danfoss at $2.37 billion. The company
had a market capitalization of $1.91 billion before Wednesday's
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.