LONDON (AP) -- British restaurant equipment manufacturer Enodis PLC said Thursday it has accepted a rival $2 billion cash buyout offer from Illinois Tool Works Inc., after agreeing last month to be acquired for less by Manitowoc Co.
But investors appeared to bet a fight could develop for control of Enodis, which supplies fryer systems to restaurants including fast-food giant McDonald's Corp. They bid Enodis shares above the new offer price in a sign that they expect a higher bid.
The offer from Illinois Tool Works, a Glenview, Ill.-based manufacturer of engineered products, represents a premium of 8.5 percent to the Manitowoc bid.
Enodis shares traded up 40 pence (78 cents), or 16.2 percent, at 283 pence ($5.58) -- above the price of 282 pence per share that ITW is offering. Manitowoc's bid is 260 pence ($5.09) a share.
A spokesman for Manitowac, based in Manitowoc, Wis., couldn't be reached for comment.
David Larkam at Arden Partners said the bid is an obvious sign of the quality of Enodis' stock, and this may see Manitowoc come in with another bid.
In a joint statement, Enodis and ITW said that the transaction will create an industry leader in food-service equipment.
The offer from Illinois Tool Works, which is recommended by Enodis' directors, is conditional on ITW obtaining antitrust clearance from European Union and U.S. regulators by Nov. 4.
Enodis owns a portfolio of 30 brands and its range of food-service products includes cooking equipment, refrigeration units, and ice and beverage dispensing equipment that are used in fast-food restaurants, institutions, grocery stores and supermarkets. It has manufacturing facilities in North America, Europe and Asia, and employs 6,800 workers. The company generates 71 percent of its revenue in the Americas.
ITW's food-equipment business comprises washing equipment, cooking and food processing equipment, refrigeration equipment and ventilation and pollution control systems.
ITW employs 60,000 workers in 52 countries.
