Gardner Denver (GDI) Jumps as Deal with SPX (SPW) Near

December 11, 2012 8:34 AM EST
Shares of Gardner Denver, Inc. (NYSE: GDI) are sharply higher early Tuesday following reports from Reuters that SPX Corp (NYSE: SPW) is in exclusive talks to acquire the company in a deal that could be finalized by the end of the year.

Private equity bidders, including KKR & Co LP (NYSE: KKR), Advent International and a consortium of TPG Capital LP and Onex Corp, are also interested in the company although Gardner Denver prefers to do a deal with SPX.

A potential sale of Gardner Denver is not new news. In October, Gardner Denver hired Goldman, Sachs & Co. to explore strategic alternatives, including a possible sale.

A price SPX would pay for Gardner Denver was not mentioned by Reuters, although a separate report from the Wall Street Journal said SPX offered "several dollars" more than the low to mid-$70s bids PE firms bid for the company. An SPX deal would likely come as a mixture of cash and stock.

Shares of Gardner Denver last traded at $71.69, up 5.2 percent.

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