NEW YORK (Bloomberg) Shares of Bermuda-based Ingersoll-Rand Co. rose the most in four years after the company said it would sell its Bobcat construction-equipment division and other units for about $4.9 billion.

The stock jumped $3.63, or 7.5 percent, to $51.77 at 4.02 p.m. in New York Stock Exchange composite trading. That was the biggest rise since a gain of 7.8 percent on July 17, 2003.

Ingersoll-Rand agreed to divest Bobcat, which makes small loaders and mini-excavators, as well as its utility equipment and attachments divisions to Doosan Infracore Co., South Korea's largest-maker of construction machinery. The price is above the $4 billion estimate from Bear Stearns Cos. analyst Ann Duignan, who said investors were concerned a tightening credit market might hamper bidders' efforts to raise funds.

"The stock underperformed last week as the market grew nervous about the company's ability to sell its 'crown jewel' in the current environment," Duignan wrote in a note yesterday. She has an "outperform" rating on the stock.

Ingersoll-Rand will use proceeds from the sale to fund acquisitions and its stock buyback program, chief executive officer Herbert Henkel said in a statement.

Ingersoll plans to focus on its climate control, security and industrial-technology divisions. Its products include Thermo King refrigerated trucks and Club Car golf carts.

The proceeds add to $1.3 billion from the disposal of Ingersoll-Rand's road-building equipment business, which it sold to Volvo AB in February.

The Bobcat deal is the second biggest in the industry behind Kohlberg Kravis Roberts & Co. and Goldman Sachs Group Inc.'s 4 billion-euro ($5.5 billion) purchase of the Kion Group, a maker of forklifts, last year, according to Bloomberg data. Doosan wants Bobcat to expand its presence in North America. Its shares rose 15 percent to 37,000 won in Seoul, their biggest gain since May, 19, 2004.

The company is part of Doosan Group, which gets $15 billion in annual sales building power stations and engines, operating restaurants and publishing GQ magazine in South Korea.

Doosan Infracore, which is setting up a company with Doosan Engine Co. to lead the acquisition, will raise $700 million and the new company will borrow the rest and repay the loans from its cash flow, the buyer said.

"The acquisition of Bobcat will provide Doosan access to a strong dealer network in the US through which to market Doosan's heavier construction products," David A. Bleustein, an analyst with UBS Securities in New York, wrote in a note today. He has a "neutral" rating on the shares.