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Stanley Black & Decker Bids $1.2 Billion for Swedish Security Firm (SWK)

Tool maker Stanley Black & Decker, Inc. ( SWK ) on Monday said it has made a $1.2 billion offer to acquire Swedish security and monitoring company Niscayah.

The offer, which includes assuming Niscayah's debt, trumps a rival bid by Niscayah's former parent company, Securitas. Securitas had offered $876 million.

SWK's offer of 18 Swiss francs per share represents a healthy 47% premium to the stock's May 16 closing price. Securitas made its offer for the company on May 17.

Niscayah's board of directed has recommended shareholders accept the SWK offer. Once completed, the deal would be immediately accretive to its 2011 earnings.

Stanley Black & Decker shares rose $1.22, or +1.8%, in premarket trading Monday.

The Bottom Line

Shares of Stanley Black & Decker ( SWK ) have a 2.37% dividend yield, based on Friday's closing stock price of $69.28. The stock has technical support in the $63-$66 price area. If the shares can firm up, we see overhead resistance around the $74-$75 price levels.

Stanley Black & Decker, Inc. ( SWK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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