Top Vulcan shareholder backs Martin Marietta deal (Global Markets) - Southeastern Asset Management, an investment management firm that holds nearly 10 percent of Vulcan Materials Co's (VMC.N) shares, said the construction materials company should strike a deal with rival Martin Marietta Materials (MLM.N).Stock Market Predictions
Southeastern, which is also a top Martin Marietta shareholder, said in a letter filed with U.S. regulators on Friday that it strongly recommended the two companies resume talks.
Martin Marietta launched a hostile, nearly $5 billion bid to buy larger rival Vulcan in December, with the hope of building the world's largest producer of sand, gravel and other construction materials. Vulcan has rejected the offer.
"We understand that a higher offer from Martin Marietta will be necessary to complete a deal, and as Vulcan shareholders we support seeking a higher offer," Southeastern senior analyst Lowry Howell and general counsel Andrew McCaroll said in the letter.
Southeastern said that if Vulcan refuses to negotiate over the bid, it would vote for the slate of directors that Martin Marietta has nominated to Vulcan's board.
Vulcan shares rose 3.1 percent to $42.93 on the New York Stock Exchange on Friday afternoon.
(Reporting By Michael Erman; Editing by Steve Orlofsky)
0 comments:
Post a Comment