Welbilt agrees to be acquired by Ali Group, after cash bid was deemed 'superior' to Middleby's all-stock bid

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Welbilt Inc. WBT, +0.37% announced Wednesday an agreement to be acquired by Ali Group S.r.l. in a cash deal that values the foodservice equipment company at about $3.40 billion. Under terms of the agreement, Italy-based Ali Group will pay $24 for each Welbilt share outstanding. Welbilt had about 141.92 million shares outstanding as of May 3. That price is 3.1% above Tuesday's closing price of $23.28, and was deemed "superior" to the all-stock buyout bid from Middleby Corp. MIDD, +2.22% made in April. Welbilt's stock rose 0.3% in morning trading, while Middleby shares climbed 1.1%. Welbilt's stock has now run up 76.7% year to date, while the S&P 500 SPX, +0.23% has tacked on 16.6%.

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