For the deal to close, shareholders representing 75% of Cooper Industries stock will need to approve the transaction. T. Rowe Price Group is Cooper Industries' largest shareholder with a 10%-plus stake in the Ireland-based company. Asset managers Barrow Hanley and Vanguard Group are also large shareholders with stakes of 7.8% and 5.4%, according to Securities and Exchange Commission data compiled by Bloomberg.
At closing, Cleveland-based Eaton will incorporate in Ireland, where Cooper Industries is headquartered, in a move that the company said may wrench out millions in tax savings.
After the Eaton and Pfizer/Nestle deals, El Paso's (EP) sale of its exploration unit to private equity fund Apollo Global Management (APO) and Yahoo!'s (YHOO) $7.1 billion sale of half of its Alibaba stake, in a deal announced late on Sunday, are the largest M&A transactions involving U.S. companies year-to-date.
In a statement, Eaton said it has secured a $6.75 billion fully underwritten bridge financing commitment from Morgan Stanley and Citigroup to finance the cash portion of the deal.-- Written by Antoine Gara in New York
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts