Bridgestone to acquire equipment firm Bandag

Japanese tire maker Bridgestone Corp. said it would buy Bandag Inc., a maker of tire retreading materials and equipment, for $1.05 billion in cash.

Bandag shares jumped $5.46, or 12.1%, to $50.50, slightly below Bridgestone’s offer of $50.75 a share. Muscatine, Iowa-based Bandag, whose sales totaled $921 million in 2005, would become a subsidiary of Bridgestone Americas Holding Inc.