Circor International Inc (NYE:CIR) shares skyrocketed Tuesday after a larger rival made an unsolicited $1.7 billion bid to buy out the diversified industrial manufacturer.
Circor shares soared 40% to to close at $43 trading on the news, while Crane shares dipped 1% to $84.04.
Crane CEO Max Mitchell said in a statement that because Circor’s board rejected a private offer earlier this month, Crane appealed to shareholders publicly so they could “express their views directly to the Circor board.” Crane called the deal an "an alternative" to Circor's “prospects as a standalone company.”
Circor responded this afternoon, saying the board had determined that the unsolicited proposal was "highly opportunistic, substantially undervalued Circor and its future prospects, and did not constitute a basis for engaging in further dialogue with Crane at this time."
A diversified maker of engineered industrial products, Crane expressed confidence that a transaction could happen quickly as it doesn’t require financing.
--ADDS Circor response, UPDATES share price--
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