Danish industrial group Danfoss A/S has increased its offer for the 24.4 per cent it does not already own in Sauer-Danfoss Inc to $692 million, valuing the US-based hydraulic and electronic components company at $2.83 billion.
In November 2012, Danfoss had offered $49 per share, and special committee at Sauer-Danfoss, which was formed after the initial bid, approved the new $58.50 per share offer.
The latest offer represents a premium of 8 per cent to Sauer-Danfoss's 27 February closing price on the New York Stock Exchange and a 49 per cent premium to 27 November, the day before Danfoss made its initial offer.
Steven Wood, chairman of the special committee of the Sauer-Danfoss Board, said, ''Following a thorough review process, assisted by our independent financial and legal advisors, the special committee has concluded that the Danfoss offer is fair to, and in the best interests of, the minority stockholders and we recommend they tender their shares into the offer.''
Sauer-Danfoss came into being in 2000 after the merger of the mobile hydraulics business of Danfoss A/S and Sauer-Sundstrand Inc.
Rockford, Illinois-based Sauer-Danfoss is a global leader in the design, manufacture, and sale of engineered hydraulic, electric and electronic systems and components for use primarily in applications of mobile equipment.
Sauer-Danfoss, with 2012 revenues of approximately $1.9 billion, has sales, manufacturing, and engineering capabilities in Europe, the Americas, and the Asia-Pacific region.
Danfoss A/S is one of the largest industrial companies in Denmark. The company is a leader within research, development and production, sales and service of mechanical and electronic components for several industries.