Clark Equipment Rejects Rival’s Acquisition Offer

Clark Equipment Co., a maker of heavy equipment, announced Tuesday that it has rejected a buyout proposal from rival Ingersoll-Rand Co. worth up to $1.34 billion.

But Ingersoll-Rand says it is not giving up.

In a letter to Clark’s chairman, Ingersoll-Rand Chairman James E. Perrella said he hopes Clark will reconsider his company’s bid of between $75 and $77 a share for each of Clark’s 17.4 million outstanding shares.

Ingersoll-Rand first proposed the acquisition March 15. The company said in a statement that it is surprised and disappointed at Clark’s rejection of the offer.

“We would have thought that an acquisition proposal at a 50% premium over the price at which Clark common stock has recently been trading--and a price exceeding Clark’s all-time high stock price--would have led to a more constructive dialogue between us,” Perrella wrote in the letter.

He said the company is releasing the letter publicly so Clark shareholders will know about the offer.

Ingersoll-Rand’s offer and Clark’s rejection of it were made public Tuesday after financial markets had closed.

Clark’s stock ended at $53.13 a share, up 50 cents on the New York Stock Exchange.

Ingersoll-Rand shares lost 25 cents to close at $32.13 on the NYSE.

Leo J. McKernan, chairman of South Bend, Ind.-based Clark, said in a statement that the Ingersoll-Rand proposal is “entirely inadequate.”