Britain's Enodis has agreed to be bought by Illinois Tool Works for 1.03 billion pounds ($2 billion), turning its back on the agreed 948 million pounds ($1.9 billion) takeover by US-based Manitowoc. Shares in Enodis, the British maker of fast-food fryers, opened up 17 percent at 285p, above the new 280 pence per share offer price, meaning investors believe Manitowoc will come back in with a higher offer.
Enodis shareholders will receive 280 pence per share in cash, plus a 2p dividend, a 16 percent premium to Wednesday's 243.5p closing price. Illinois Tool Works (ITW) makes cooking and other kitchen equipment among its broad range of other tools and products.
The deal trumps the agreement struck by Enodis' board earlier this month to sell itself to Manitowoc - which makes cranes and restaurant equipment - for 260p per share, including a 2p dividend. ITW is buying Enodis to expand its product categories and fast food segment opportunities, it said.