Shares of Anixter rose 3.3% to $95.12 a share after the distributor, with products including electrical and electronic wire and cable, said it had agreed to a higher bid of $93.50 a share cash from Clayton, Dubilier & Rice.
The New York private equity firm upped the ante from its previous offer of $86 a share (plus an additional $2.50 a share conditioned on the company meeting certain targets).
The new offer, which Anixter accepted, is a 31% premium over the company's closing price on Oct. 29 and a 47% premium over the stock's weighted-average trading price for the three previous months, Anixter said in a statement.
Overall, Clayton, Dubilier & Rice's new offer represents an increase of $300 million, with its previous offer valued at $4 billion, Anixter said.
After comparing the two offers, Anixter's board went with CD&R's all-cash deal. Wesco's offer was a mix of cash, common stock, and a new series of preferred stock, "for which there is no established market or trading price," Anixter Chairman Sam Zell said in a statement.
"The board has unanimously concluded that CD&R's improved, all-cash proposal is superior to Wesco's offer," Zell said.