Ingersoll-Rand Co.'s $10.1 billion buyout of Trane Inc., a move that will create one of the largest air conditioner makers in the world, led an unexpectedly active day for acquisitions on Monday.
Ingersoll-Rand said it will buy Trane, formerly American Standard Companies Inc., for $47.81 per share, a 28.5 percent premium to Trane stock's Friday closing price. Trane makes residential and commercial climate control equipment.
Trane shares jumped $8.55, or 23 percent, to $45.75 in afternoon trading, while Ingersoll-Rand shares skidded $4.13, or 8.4 percent, to $45.04.
National Oilwell Varco Inc. said it will buy rival drilling equipment maker Grant Prideco Inc. for $7.37 billion, or $58 per share, in cash and stock. National Oilwell said the buyout would give it new products and access to growing parts of the market.
The deal is a 22.2 percent premium to Friday's closing price for Grant Prideco shares.
Grant Prideco stock jumped $6.29, or 13.3 percent, to $53.75. National Oilwell stock fell $7.04, or 9.1 percent, to $70.33.
DryShips Inc., a drybulk carrier, said it agreed to buy a 30.4 percent stake in Norwegian offshore drilling company Ocean Rig ASA. DryShips, based in Greece, will pay about $405 million for its share.
DryShips shares fell $12.77, or 15.2 percent, to $71.50.
Epicor Software Corp. said it will buy NSB Retail Systems PLC for 160 million British pounds ($322.9 million), or 38 pence (77 cents) per share.
Epicor stock shed 28 cents, or 2.4 percent, to $11.34.
Shares of Loews Corp. rose after the conglomerate said it will spin off its cigarette maker Lorillard Inc. into a separate publicly traded company. The deal is expected to close in mid-2008. Loews said the move will allow Lorillard to increase its value.
Loews shares gained $1.09, or 2.3 percent, to $47.89.