Sometimes business combinations are about growth and sometimes they are about survival ... and every once in a while they can be both. There's no questioning that the current market environment for aggregates (a catch-all for crushed stone, sand, and gravel) is pretty poor as construction and large-scale infrastructure projects have evaporated. Consequently, while Martin Marietta's (NYSE:MLM) bid for Vulcan Materials (NYSE:VMC) may seem at least a little opportunistic, it does take some risk out for both companies and leaves both investor groups with a lot of upside.
The Proposed Deal
Although proxy materials from Martin Marietta suggest that these two companies have been talking about a deal for something like 18 months, Martin Marietta has apparently tired of waiting and debating. The company has launched a hostile stock-for-stock offer for its larger rival Vulcan.
To read more, follow this link:
http://stocks.investopedia.com/stock-analysis/2011/Martin-Marietta-Puts-Vulcan-Between-Rocks-And-A-Hard-Place-MLM-VMC-EXP-CX1216.aspx
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