KKR - Circor bidder Arcline added ticking fee for Circor takeover offer

2023-07-06 11:32:53 ET

Circor ( NYSE: CIR ) bidder Arcline added a ticking fee to its $57 per share proposal to acquire the valve maker.

Unidentified Financial Partner A, which traders identified as Arcline, proposed adding a ticking fee of as much as $1.50 a share, to its $57 a share cash offer for Circor ( CIR ) last Thursday, according to a proxy filing f rom Wednesday. The ticking fee was set to run from Jan. 1 through June 30.

The disclosure came after Circor ( CIR ) announced last Thursday that it had accepted KKR's revised bid of $56 a share, even though it was lower than Arcline's $57 offer, at least partly due to a faster path to receiving anticipated antitrust approvals. KKR's deal also included a ticking fee of as much as $1/share.

Arcline said when it made its original offer last Wednesday it would expire automatically if Circor's ( CIR ) board didn't declare it superior to KKR  by no later than June 29.

As of June 30, Circor ( CIR ) had not received another acquisition proposal from Financial Party A, according to the proxy filing.

On Friday, a Stifel analyst wrote that KKR's revised deal to buy Circor ( CIR ) for $56 a share still appeared to undervalue the company on a sum-of-the-parts basis.

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