Circor rejects Crane's buyout deal valued at $1.7 billion
Circor International Inc. said Monday it has rejected the unsolicited buyout bid from Crane Co. given that it "substantially undervalues" the flow control technology company, and strongly urges shareholders not to tender shares into Crane's offer. In May, Crane said it would pay $45 for each Circor share outstanding, which at the time represented a 47% premium. The deal was being valued at $1.7 billion. Then on June 17, Crane said it commenced a tender offer for Circor shares. Circor said its plan to accelerate earnings growth, reduce debt and add "significant near-term value" for shareholders would be "far in excess" to Crane's buyout bid. Circor's stock, which was still inactive in premarket trading, has gained 15% over the past 12 months, while Crane shares have slipped 0.3% and the S&P 500 has advanced 7.1%.
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