Crane Gets Two-Thirds of Circor Shares But Offer Still Failed
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About two-thirds of Circor International Inc. shares were elected to be tendered to Crane Co. before the $48 a share offer expired late Friday, people familiar with the matter said, the latest twist in Crane’s hostile pursuit of its rival industrial company.
Even though a majority of Circor shareholders tendered their shares, the offer failed because it didn’t meet certain conditions, the people said Saturday. One of the conditions included Circor entering into a merger agreement with Crane. The shares will be returned to Circor investors.
The latest development may add pressure on Circor’s board to engage with its rival on a deal.
The news came after Gamco Investors Inc., the largest investor in Circor with 14.4%, said it would tender its shares to Crane on Friday. Gamco, the investment company led by Mario Gabelli, is also a shareholder in Crane.
Crane is planning to announce the tender results as early as Monday, said the people, who asked not to be identified because the matter is confidential.
Crane declined to comment on the tender results and Circor couldn’t immediately be reached.
Earlier this month, Crane raised an initial offer by about 6.7% to $48 a share, valuing Circor at $955 million. Circor rejected that bid, saying it “substantially undervalues the company and is low-value, highly conditional and opportunistic.”
Even if Circor shareholders are supportive of a deal, the likelihood of one is uncertain given Crane has said it wouldn’t raise its bid beyond $48 a share, and that offer has now lapsed.
Stamford, Connecticut-based Crane is seeking to buy Circor to create a larger and more diversified industrial-products company. Burlington, Massachusetts-based Circor has revenue exceeding $1 billion, and specializes in valves and fluid-control systems. Crane also makes valves but has a broader portfolio, with its reach extending into vending machines and airplane brakes. It generates three times more in sales than Circor.
Crane’s largest customers by revenue include Boeing Co. and Airbus SE, while Circor’s include Lockheed Martin Corp. and Exxon Mobil Corp.
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