28 Jan 2011

Speculation that Fletcher Building raising offer for Crane

11:15 am on 28 January 2011

Fletcher Building is reportedly raising its takeover offer for the Australian plumbing supplies company, Crane Group.

The Australian newspaper says both companies are expected to announce a deal on Friday.

In an unsourced report, the newspaper says Fletcher will raise the cash component of its offer and the revised deal is likely to approach $A10 per share.

Crane rejected Fletcher's original $A835 million offer as unfair and unreasonable.

Crane says an independent report appraising the bid, which has not yet been made public, values the company at between $A9.92 - $A11.56 per share - roughly 14% higher than Fletcher's bid.

Trading in both companies has been suspended since Thursday.