Shareholder throws support behind proposed Vulcan, Martin Marietta deal
January 23, 2012In a letter filed with U.S. regulators on Jan. 20, Southeastern Asset Management, a top Vulcan Materials shareholder, says it favors a merger between the nation’s largest construction materials company and Martin Marietta Materials, Reuters reported.
Southeastern Asset Management, an investment management firm that holds nearly 10 percent of Vulcan’s shares, believes the two companies should continue talks in attempts to create the world’s largest producer of stone, sand and gravel. Martin Marietta launched a hostile takeover bid for Vulcan last December, and Vulcan’s board of directors recommended that its shareholders reject the offer. The companies have continued to hold differing views on the proposal and have responded to each other often through press releases.
According to Reuters, if Vulcan refuses to negotiate over the bid, Southeastern Asset Management would vote for the slate of directors that Martin Marietta has nominated to Vulcan’s board. Southeastern is also a top Martin Marietta shareholder, the article notes.
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