Vulcan (VMC) and Martin Marietta Materials (MLM) Higher as Hostile Bid Less Likely
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Price: $53.77 +0.49%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 0.1%
EPS Growth %: +28.6%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 0.1%
EPS Growth %: +28.6%
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Shares of Vulcan Materials (NYSE: VMC) and Martin Marietta Materials (NYSE: MLM) are moving higher, gaining 6 percent and 3 percent respectively. A court injunction preventing Martin Marietta materials from pursuing a hostile takeover of Vulcan materials expires Friday.
In July, a Delaware Supreme Court concluded that Martin Marietta was in violation of the confidentiality agreements that were entered into while the parties were contemplating a friendly merger.
In a recent note, Ted Grace an analyst at Susquehanna dismisses rumors of a hostile bid as unlikely, since business has improved at Vulcan. He also said MLM would have to raise bid above prior 0.50 exchange ratio, and that the takeover would face risk of antitrust due to an overlapping market. Recently investors sentiment for a combination has declines somewhat, notes the report.
Reports say that Vulcan Materials may be open to discussions with MLM but they are unlikely to begin for anything less than a 0.70 exchange ratio.
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In July, a Delaware Supreme Court concluded that Martin Marietta was in violation of the confidentiality agreements that were entered into while the parties were contemplating a friendly merger.
In a recent note, Ted Grace an analyst at Susquehanna dismisses rumors of a hostile bid as unlikely, since business has improved at Vulcan. He also said MLM would have to raise bid above prior 0.50 exchange ratio, and that the takeover would face risk of antitrust due to an overlapping market. Recently investors sentiment for a combination has declines somewhat, notes the report.
Reports say that Vulcan Materials may be open to discussions with MLM but they are unlikely to begin for anything less than a 0.70 exchange ratio.
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