Crane says continues to prefer 'negotiated transaction' with Circor's board

(Reuters) - U.S. industrial manufacturer Crane Co on Monday said it continues to prefer a “negotiated transaction” with Circor International Inc’s board, weeks after making a $894 million hostile bid for the smaller rival.

Earlier this month, Crane said it was willing to adjust its $45 per share offer for Circor if its board was willing to engage in talks.

On Monday, Crane began a tender offer for all outstanding shares of Circor and called on Circor shareholders to act on the opportunity. Crane’s tender offer is set to expire on July 16.

Circor in response said its board will review and evaluate Crane’s tender offer, and shareholders do not need to take any action at this time.

The board intends to make its recommendation within 10 business days, Circor said.

“Circor shareholders have endured five years of underperformance and a series of value-destroying capital allocation decisions by current management,” Crane Chief Executive Officer Max Mitchell said in a statement.

Crane, which makes pumps and valves, made a hostile takeover bid for Circor in May after an earlier offer was rejected by Circor.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Shailesh Kuber