IR makes bid for Clark

Ingersoll-Rand, US manufacturer of construction equipment, has revealed its interest in buying Clark Equipment subject to the company completing its sell-off of VME.

Last month US firm Clark Equipment accepted a œ360 million deal from its 50% partner Volvo to take full control of VME, the world's number three manufacturer in the construction and earthmoving business.

If Ingersoll's bid for Clark is accepted it could be worth more than $1.3 billion in cash.

Ingersoll said it would pay $75 per share for Clark, and might be prepared to increase its offer by to much as $77 if Clark could justify the price.

Clark Equipment companies likely to be affected by the deal include Melroe Europe, best known for its Bobcat skid steers, and transmission manufacturer Clark Hurth.

Last year Ingersoll-Rand reported sales of $4.5 billion, compared with sales of $946 million at Clark.