Sauer-Danfoss sued by shareholder over stock buyout

Sauer-Danfoss Inc., a maker of hydraulic and electronic equipment, was sued by an investor who asked a judge to stop majority shareholder Danfoss A/S's plan to acquire the remaining shares it doesn't already own.

In a Delaware Chancery Court complaint filed in Wilmington Dec. 23, Laurie Forrest contends the $10.10-a-share offer undervalues her stock, which has been trading higher.

Directors of the Lincolnshire-based company have a duty of fair-dealing to shareholders, and the offer represents "grossly inadequate consideration," Forrest claims.

Sauer-Danfoss, with $2 billion in 2008 sales, said in a statement Dec. 22 that its 75 percent stakeholder, Nordberg, Denmark-based Danfoss A/S, offered to buy the remaining shares, and that the board was considering the bid.

Officials at Sauer-Danfoss weren't immediately available to comment on the lawsuit today.

Sauer-Danfoss rose 21 cents to $12.07 in New York Stock Exchange composite trading at 12:41 p.m. The stock has risen 38 percent this year.

The case is Forrest v. Sauer-Danfoss Inc., CA 5164, Delaware Chancery Court (Wilmington).