UPDATE 2-Dover to spin off communication businesses

Thu May 23, 2013 1:49pm EDT
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* New company would have revenue of $1.3 bln

* Dover to focus on industrial businesses

* Shares rise as much as 5 pct

By Mridhula Raghavan

May 23 (Reuters) - U.S. industrial conglomerate Dover Corp said it plans to spin off most of its communication technologies businesses into a publicly traded company to focus on its industrial businesses, sending its shares up as much as 5 percent.

The businesses, to be folded into the company's Knowles Corp unit, mainly make microphones, speakers, receivers and other products used in smartphones.

Dover's other products include industrial pumps, oil and mining drilling tools and food packaging equipment.

"As a standalone business, Knowles will be able to attract a natural set of investors who are much more interested in the consumer electronics space than your typical industrial investors," Chief Executive Robert Livingston told Reuters on Thursday.

"(The spinoff) clearly brings the focus back inside Dover to our core industrial business, focused around energy, fluids and refrigeration."   Continued...