Martin Marietta Materials Inc., based in Virginia, has continued its efforts toward an unfriendly takeover of Birmingham-based Vulcan Materials Co. Martin Marietta has nominated five directors to replace the five Vulcan leaders currently up for re-election, and its largest shareholder—a hedge fund that also owns shares in Vulcan—has begun pushing for the sale.
The two firms were engaged in merger talks when Martin Marietta surprised the Alabama firm by going straight to shareholders with a stock bid.
Vulcan contends that the offer of a share of Martin Marietta for each two of Vulcan isn’t fair to its shareholders, a claim under scrutiny by the Department of Justice.
Meanwhile, both firms stand to profit if Congress approves President Obama’s plan to redeploy money previously spent on war in Iraq to fund U.S. infrastructure improvements.
By Nedra Bloom