Danfoss A/S once again sweetens offer for rest of Sauer-Danfoss to $677 million

Danish industrial group Danfoss A/S once again hiked its offer yesterday to acquire the remaining shares it does not already own in Sauer-Danfoss Inc., the US-based maker of hydraulic systems to about $677 million.

Sauer-Danfoss  came into being in 2000 after a merger of the mobile hydraulics business of Danfoss A/S and Sauer-Sundstrand Inc.

Nordborg, Denmark-based Danfoss A/S with 2009 revenues of over $1.9 billion and currently holding about 75.7 per cent of Sauer-Danfoss, has upped its offer to $14 a share or about $165 million cash.

Danfoss A/S had initially made an offer of $10.10 a share in December 2009, which it increased to $13.25 a share last month, but Mason Capital Management, which holds 1.94 million shares of Sauer-Danfoss, rejected the offer saying it undervalued the company.

Danfoss A/S said in a statement today that its latest offer of $14.00 per share is the best and final offer, representing a premium of 5.7 per cent over the previous offer price of $13.25 per share and 65.9 per cent over the closing price of the shares on 18 December 2009.

Rockford, Illinois-based Sauer-Danfoss Inc. is a worldwide 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 2009 revenues of approximately $1.2 billion, has focused its sales, manufacturing and engineering in Europe, the Americas, and the Asia-Pacific region.

Danfoss A/S is one of the largest industrial companies in Denmark. The global group is a leader within research, development and production, sales and service of mechanical and electronic components for several industries.