Wesco raises amount of preferreds in revised bid to purchase Anixter

By Wendy Van Sickle

Columbus, Ohio, Jan. 3 – Wesco International, Inc. revised its offer to purchase Anixter International Inc., increasing the amount of a new class of perpetual preferred stock it is offering as part of its consideration, according to a news release from Anixter on Friday.

Anixter has received purchase offers from Wesco as well Clayton, Dubilier & Rice LLC [CD&R], each of which has sweetened its initial offer.

Wesco’s new revised offer proposes to purchase Anixter for a nominal consideration of $97.00 per share in cash and stock, consisting of $63.00 in cash, plus a fixed exchange ratio of 0.2397 shares of Wesco common stock, plus $19.89 in face amount of a newly created class of Wesco perpetual preferred stock

On Dec. 30, Wesco said it was offering to purchase the global distributor of network and security solutions, electrical and electronic solutions and utility power solutions for $93.50 per share in cash and stock, which amount included $63.00 in cash, 0.2397 shares of Wesco common stock plus $16.65 of the new preferreds.

Anixter said in its Friday release that it is considering Wesco’s revised offer.

As announced on Thursday, Anixter agreed to an amendment and restatement of its merger agreement with [CD&R] to increase the per-share consideration payable to Anixter’s shareholders to $93.50 per share in cash from $86.00 per share in cash and a $2.50 contingent value right upon the occurrence of certain events. The current merger agreement with CD&R does not include the contingent value right.

Anixter said its board will review and consider Wesco’s proposal in consultation with its financial and legal advisers, but that it remains subject to its agreement with CD&R and its board has not changed its recommendation in support of the current merger agreement with CD&R.

Wesco is a Pittsburgh-based provider of electrical, industrial and communications maintenance, repair and operating and original equipment manufacturer products, construction materials, and advanced supply chain management and logistic services. Anixter is a Glenview, Ill.-based distributor of network & security solutions, electrical & electronic solutions and utility power solutions.

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