Shares of Anixter International (AXE) - Get Report rose Thursday after the distributor of communications and security products announced that a takeover offer from Wesco International (WCC) - Get Report was “superior” to its prior agreement to sell to Clayton, Dubilier & Rice.
Anixter International, whose products including electrical and electronic wire and cable, had opted for the private-equity firm’s bid over Wesco’s last week. CD&R offered $93.50 a share in cash.
Under the new offer from Wesco, an electronics distributor and services company, it would pay $100 a share for Anixter. That would be made up of $70 a share in cash, 0.2397 share of Wesco common stock, and $15.89 a share in face amount of Wesco perpetual preferred stock.
The deal values Anixter at $4.5 billion including net debt.
"After careful review and consideration and consultation with our financial and legal advisers, the board of Anixter has determined that the current Wesco offer is superior to the existing CD&R agreement," said Sam Zell, chairman of Anixter.
Anixter’s agreement with CD&R gives the private-equity firm five business days to come up with a better offer. That agreement stipulates that Anixter must pay a $100 million termination fee to CD&R if Anixter terminates the agreement in favor of deal with Wesco.
Wesco has agreed to pay the termination fee on Anixter’s behalf in that case, Anixter said in a statement.
Anixter shares rose 2.02% Thursday to $98.36. The stock has soared 74% over the past year, compared with a 26% gain for the S&P 500 index.