Pall Corp.'s Stock Surges After Deal To Be Bought Out By Danaher

Shares of Pall Corp. surged 4.8% in premarket trade, on the heels of a 19% jump on Tuesday, after the water filtration company announced a deal to be acquired by Danaher Corp. in a deal valued at $13.8 billion. Under terms of the deal, which is expected to close this year, Danaher will pay $127.20 in cash for each Pall share outstanding, which represents a 7.2% premium to Tuesday's closing price, and a 28% premium to Monday's closing price. Danaher's stock rallied 6.6% premarket. Pall's stock soared on Tuesday after the Wall Street Journal reported late Monday that the company was in the late stages of an auction. Danaher said it expects the deal to add 40 cents a share to adjusted earnings in 2016. Danaher said it plans to separate into two publicly-traded companies, one which operates as a science and technology company that includes Pall Corp., and another as an diversified industrial growth company. Pall's stock has run up 17% year to date through Tuesday, while Danaher's has edged up 0.3% and the S&P 500 has gained 2%.