Farm equipment and construction machinery firm CNH Global NV (NYSE: CNH) on Wednesday received a sweetened offer from Fiat Industrial SpA for the 12% of the Dutch company that Fiat does not already own. A special committee of CNH Global’s board now says that it “views favorably the latest enhanced offer” from Fiat.
Under the terms of the proposed deal, CNH shareholders will receive 3.828 shares in a new company to be incorporated in the Netherlands in exchange for each share of CNH they now hold. In addition, CNH shareholders will get a $10 per share cash dividend by the end of this year, “if practicable.” Fiat will defer its special dividend.
The special committee stressed that “no contract, agreement, or obligation” regarding the transaction will arise “until definitive documentation is negotiated and executed by the appropriate parties.” CNH shareholders need take no action at this time; the special committee will notify them if and when action is needed.
CNH shares are trading up more than 3% this morning, at $49.23, after posting a new 52-week high of $49.45 earlier. The prior range was $34.36 to $47.88.