By The Associated Press
Wednesday, February 17, 2010
L.B. Foster, which makes products for the rail, construction and energy industries, has bid $112.4 million in cash for railroad equipment maker Portec Rail Products Inc.
The companies said in a joint statement Wednesday that L.B. Foster will, through a subsidiary, make a cash tender offer to acquire all of Portec's outstanding shares of common stock for $11.71 per share. That's a 4 percent premium based on Portec's closing share of price of $11.23 on Tuesday.
The deal is subject to conditions, including at least 65 percent of Portec's outstanding shares being tendered. The deal is expected to close before the end of the second quarter.
Shares of L.B. Foster Co., rose 81 cents, or 3 percent, to $27.36, while shares of Portec rose 44 cents, or 4 percent, to $11.67
