Cooper Industries Rejects Danaher Bid

Cooper Industries Inc., the maker of Crescent wrenches and Halo lighting fixtures, rejected a $7-billion unsolicited bid from Danaher Corp., calling the offer inadequate and said it may consider competing proposals.

Danaher, the maker of Craftsman tools, offered last week to pay $54 to $58 a share in cash and stock. Cooper asked Credit Suisse First Boston, the company’s financial advisor, to consider other alternatives such as a sale, merger or acquisition.

Cooper also postponed a shareholder vote on whether to reincorporate in Bermuda because it doesn’t want that to be a distraction during any transaction talks. Danaher said it would drop the bid if the incorporation measure was approved.

In NYSE trading, Cooper shares surged $6.26 to close at $60.25, and Danaher fell 80 cents to close at $57.75. Danaher, based in Washington, also would assume about $1.5 billion in Cooper’s debt under the offer.