Gardner Denver Inc.'s board would convene on Monday to consider the US$3.7 billion offer by private equity firm KKR and Co. LP. Many of industrial machinery maker's shareholders such as ValueAct Holdings LP have submitted their acceptance of the US$75 per share valuation KKR.
Other shareholders such as Rowe Price Associates, which owns 9.7% and BlackRock Institutional Trust Company, which has a 5.49% stake have not indicated their consent or refusal on the offer. ValueAct owns 5.1% of Gardner Denver.
The review of the offer was confirmed by a person familiar with the transaction who requested anonymity. For their part, Gardner Denver and ValueAct did not respond to a request for a statement while KKR declined to comment. Another option made available is leveraged recapitalization.
Last Friday, Gardner Denver reported its 2013 forecast below many market analyst projections, citing weak demand for its industrial products, especially from the petroleum and other industrial markets.
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