Danish industrial group Danfoss A/S said it increased its bid to acquire the remaining stake in Sauer-Danfoss Inc. it does not own, valuing the firm at $2.83 billion, according to sources familiar with the deal.

Danfoss signed a definitive merger agreement to buy 24.4% of Sauer-Danfoss common shares for 58.50 per share in cash, which represents a 48.6% premium to Sauer-Danfoss share's closing price on November 27.

In addition, a dividend for the first quarter of this year was declared by the Board of Sauer-Danfoss in which a cash dividend of $0.35 per share payable on March 29 will be given to stockholders of record as of March 15.