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(Adds shares in paragraph 2, deal details in paragraphs 3 and 4 and background in paragraph 7)
June 28 (Reuters) - Private-equity firm Arcline Investment Management LP on Wednesday proposed to buy Circor International Inc for $57 per share in cash, topping a rival bid from KKR & Co Inc for the industrial machinery maker.
The new offer is $6 more than the rival bid and comes after the target company snubbed a proposal from an unnamed bidder, which sources identified as Arcline, and instead chose to sell itself to KKR in a $1.7 billion deal.
Shares of Circor were up about 7% at $55.07 in premarket trading.
Arcline said its binding proposal would expire automatically if the board does not declare it to be a "superior proposal" by no later than 8:00 p.m. ET on Thursday. It also said its bid was supported by fully committed financing from BMO Capital Markets Corp and Bank of Montreal.
Circor said on Wednesday that KKR's offer was superior because it offered more financing certainty and a clearer and faster path to receiving antitrust approvals.
The company, which makes flow-control products to help manage and control liquids and gases, did not immediately respond to a Reuters request for comment. KKR did not immediately respond to a Reuters request for comment.
Circor saw a 9% rise in orders in its most recent quarter reflecting demand for its services as it benefited from continued recovery in the commercial aerospace market.
Arcline owns Fairbanks Morse Defense, which is a provider of diesel engines and equipment to the U.S. Navy.
BMO Capital Markets Corp is serving as financial adviser to Arcline. (Reporting by Priyamvada C and Pratyush Thakur in Bengaluru; Editing by Dhanya Ann Thoppil and Anil D'Silva)