2023-06-28 16:26:17 ET
Congressman Rob Wittman (R-VA) said he's concerned about Arcline Investment Management's takeover bid for Circor International ( NYSE: CIR ) due to potential concentration in submarine manufacturing.
"I’m concerned about this potential merger between two of America’s critical valve production companies," Wittman tweeted on Wednesday "At a time when we are expanding the submarine industrial base to meet future requirements, we need more information before deciding to support a valve consolidation proposal."
Private equity firm Arcline submitted a $57/share all-cash takeover offer for Circor ( CIR ) on Wednesday, above the amended $51/share deal with KKR ( KKR ) announced on Tuesday.
Arcline said the offer would expire automatically if Circor's ( CIR ) board does not declare it superior to KKR ( KKR ) by no later than Thursday.
Earlier Wednesday, KKR reaffirmed its intention to acquire Circor ( CIR ), saying that the proposed Arcline deal would likely have antitrust issues as it owns a business called Fairbanks Morse Defense, which is a direct competitor to Circor ( CIR ).
"Any reasonable antitrust analysis indicates that a transaction with funds that control a direct competitor to Circor, even if it receives regulatory approval, which is by no means certain, would close no sooner than the second half of 2024," KKR said in its statement.
More on Circor International:
- Financial and valuation comparison to sector peers
- Analysis: Circor International: Undervalued Stock With Solid Upside Potential
- Stock price return: Up 118% YTD, up 235% in the past 12 months
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Congressman Rob Wittman voices concerns over potential Arcline purchase of Circor