Shares of Pall Corp surged 11% on Monday after an analyst said the looming retirement of the diversified U.S. manufacturer's chief executive officer could set the stage for a sale of the company.

Pall, which makes filters used in manufacturing and healthcare applications, said after the close of trading on Friday that CEO Eric Krasnoff planned to retire on or before March 2012.

"We believe Eric Krasnoff's retirement is a catalyst for the company to merge or become acquired," Credit Suisse analyst Hamzah Mazari wrote in a note to clients. "The majority of Pall's closest competitors have been acquired by larger companies."

Pall shares were up $5.35 at $54.01 in morning trading on the New York Stock Exchange. Earlier, they had set a lifetime high of $54.96.

At Friday's close, the stock had risen almost 40% over the past year, outpacing a 29% rise for the Standard & Poor's capital goods industry index.

Krasnoff plans to pursue a personal relationship with Sandra Marino, who stepped down as Port Washington, New York-based Pall's general counsel when the two informed the board of their plans, the company said. Krasnoff, who is also chairman and president, will be 60 in March 2012 and could step down earlier if a successor is named before then.

Pall said in a statement that a board investigation into the matter found that the relationship had no effect on the company's results and that no company assets had been misused.