Colfax Corp (CFX.N) said Sunday it is "in preliminary discussions" with Charter International (CHTR.L) about making an all-cash offer for the maker of welding tools and gas and air handling equipment. The offer would be financed with a combination of balance sheet cash, new debt and new equity, including investments from certain existing shareholders and third-party investors, according to a statement from Colfax. The announcement by Colfax, based in Fulton, Maryland, follows Thursday's news that takeover firm Melrose Plc (NYN.L) had secured access to Charter's books and raised its 1.4 billion pound ($2.3 billion) offer for Charter by 2 percent to 850 pence a share. Charter has rejected two approaches by Melrose since June. Charter, in a separate announcement, said talks with Colfax were in an early stage.
Colfax Corporation (Colfax) is a global supplier of a range of fluid handling products, including pumps, fluid handling systems and controls and specialty valves. Shares of CFX fell by 5.88% or $-1.46/share to $23.39. In the past year, the shares have traded as low as $13.37 and as high as $28.75. On average, 206392 shares of CFX exchange hands on a given day and today's volume is recorded at 129464.
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