North / South America
Martin Marietta renews bid for Vulcan with savage attack on Vulcan's management
Feb, 22 2012
Vulcan Materials Co. is the weaker firm and needs to get back to the table, Martin Marietta said.
(BIRMINGHAM, Alabama) -- Martin Marietta Materials is telling investors that takeover target Vulcan Materials Co. is weak, poorly managed and has a history of not living up to its promises.
North Carolina-based Martin Marietta has created an slide-show presentation for investors to view on its Web site and filed the materials with the Securities and Exchange Commission.
Martin Marietta says in the presentation that Vulcan continues to lag in profit margin and cash flow, while overestimating the cost-savings it can achieve. Wall Street, Martin Marietta said, is not impressed, given recent stock prices.
"Martin Marietta, based on its demonstrated track record of superior cost management and performance, is positioned to create value in a combination," the presentation says. "Vulcan's board should promptly commence good-faith negotiations in a real effort to reach mutual agreement on a combination with Martin Marietta."
It is the latest salvo between the top two companies in the business of mining rock, crushing it and selling to road contractors. In December, Martin Marietta launched a hostile $4.7 billion takeover bid, which Vulcan's board rejected as "low ball and opportunistic."
Vulcan said last week it plans to sell up to $500 million of assets to pay down debt and complete the realization of $100 million in cost savings from a new computer system and consolidation of operating units.
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