{"id":5323,"date":"2016-07-29T15:30:58","date_gmt":"2016-07-29T15:30:58","guid":{"rendered":"http:\/\/minutes.machine.market\/?p=5323"},"modified":"2016-07-29T15:30:58","modified_gmt":"2016-07-29T15:30:58","slug":"marcato-discloses-5-1-stake-in-crane-maker-terex","status":"publish","type":"post","link":"https:\/\/machine.market\/blog\/marcato-discloses-5-1-stake-in-crane-maker-terex\/","title":{"rendered":"Marcato Discloses 5.1% Stake in Crane Maker Terex"},"content":{"rendered":"

Hedge fund plans to push for change at Terex but doesn\u2019t offer specifics<\/h2>\n

By BOB TITA and MARIA ARMENTAL<\/p>\n

Two months after Zoomlion<\/a> abandoned its attempt to acquire Terex Corp<\/a>., a San Francisco activist investor on Thursday has disclosed a 5.1% stake in the maker of construction cranes.<\/p>\n

WSJ<\/a> reports, Marcato Capital Management LP<\/a> offered no specifics about the strategy behind its investment in 5.5 million shares of Terex, but in a regulatory filing it revealed it has already talked with Terex executives and expects to continue to engage in discussions about \u201cenhancing shareholder value through various strategic alternatives or operational or management initiatives.\u201d<\/p>\n

Terex Vice President Tom Gelson said in a written statement that company executives \u201cappreciate [Marcato\u2019s] confidence in our business and management. We look forward to listening to ideas that could help improve our company.\u201d<\/p>\n

Analysts were skeptical about Marcato\u2019s ability to quickly install value-enhancing changes at Terex, which was built through dozens of acquisitions starting in the mid-1990s. Its main business lines include tower cranes for building skyscrapers, cranes on trucks and motorized lifts for workers and materials. The company has mostly struggled to boost profit since the recession.<\/p>\n

\u201cThis is not one that lends itself to a quick resolution, \u201c said Eli Lustgarten, an analyst for Longbow Research. \u201cIt\u2019s is not an especially great company. It needs a lot of more work.\u201d<\/p>\n

Terex\u2019s stock closed up 1.8% on Thursday at $23.55 a share.<\/p>\n

In the past 12 months, Terex executives have been engaged in continuous talks about a merger or outright sale of the company. Based in Westport, Conn., Terex in August last year said it would merge with Finland\u2019s Konecranes Oyj in an all-stock deal.<\/p>\n

The company, however, put the Konecranes<\/a> deal on hold early this year, when Zoomlion Heavy Industry Science & Technology Co., one of China\u2019s largest construction-equipment manufacturers, made an informal and unsolicited offer for buy Terex for $3.4 billion in cash.<\/p>\n

Terex executives complained that Zoomlion didn\u2019t produce a fully financed, binding proposal for the purchase, even after months of discussions.<\/p>\n

Then under an ultimatum from Terex, Zoomlion withdrew its offer at the end of May. That cleared the way for Terex to recast the original merger idea with Konecranes and sell just its lines of maritime port cranes and factory cranes to the Finns for $1.3 billion, which includes cash and a 25% stake in Konecranes.<\/p>\n

Terex also recently said it would sell its compact construction equipment business in Germany to Yanmar Holdings Co. for $60 million.<\/p>\n

Marcato was founded in 2010 with starter capital from buyout firm Blackstone Group LP. The hedge fund is managed by Mick McGuire, a prot\u00e9g\u00e9 of activist investor William Ackman. The firm\u2019s recent investments include restaurant chain Buffalo Wild Wings Inc.,<\/span>Goodyear Tire & Rubber Co.<\/span> and department store operator Macy\u2019s.<\/span><\/p>\n

The bulk of Marcato\u2019s 5.5 million Terex shares were acquired through call options, purchased from June 10 through July 27, according to the filing. The call options grant Marcato the right to buy Terex shares at a $14 target price by Dec. 21, 2017.<\/p>\n

Corrections & Amplifications: <\/strong>
\nHedge fund Marcato Capital Management LP purchased 5.5 million shares in crane manufacturer Terex Corp. from June 10 through July 27. An earlier version of this article incorrectly stated the period as June 10 through June 27. (July 28, 2016)<\/p>\n

Write to <\/strong>Bob Tita at robert.tita@wsj.com<\/a> and Maria Armental atmaria.armental@wsj.com<\/a><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Hedge fund plans to push for change at Terex but doesn\u2019t offer specifics By BOB TITA and MARIA ARMENTAL Two months after Zoomlion abandoned its attempt to acquire Terex Corp., a San Francisco activist investor on Thursday has disclosed a 5.1% stake in the maker of construction cranes. WSJ reports, Marcato Capital Management LP offered […]<\/p>\n","protected":false},"author":1,"featured_media":5324,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":""},"categories":[2,8],"tags":[],"yoast_head":"\nMarcato Discloses 5.1% Stake in Crane Maker Terex - MachineMarket Blog<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cranemarket.com\/blog\/marcato-discloses-5-1-stake-in-crane-maker-terex\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Marcato Discloses 5.1% Stake in Crane Maker Terex - MachineMarket Blog\" \/>\n<meta property=\"og:description\" content=\"Hedge fund plans to push for change at Terex but doesn\u2019t offer specifics By BOB TITA and MARIA ARMENTAL Two months after Zoomlion abandoned its attempt to acquire Terex Corp., a San Francisco activist investor on Thursday has disclosed a 5.1% stake in the maker of construction cranes. 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