Titan International up after ending buyout talks
By
Associated Press
September 11, 2008
|
Shares of Titan International Inc. rose Thursday after the maker of off-road vehicle tires ended talks to buy outstanding shares of Titan Europe PLC, an engineering company in which Titan International holds a 17.3 percent stake.
In April, Titan International filed a preliminary proxy with the Securities and Exchange Commission about a potential offer for an exchange of stock to be made with Titan Europe for up to 51 percent or more of Titan Europe's outstanding shares.
On Wednesday, Titan International decided against such a move.
Titan International, based in Quincy, Ill., said it continues to focus on production of its new 57- and 63-inch giant steel-belted radial tires.
Oppenheimer analyst Ian Zaffino commended the company's motives for ending the talks.
"While slightly disappointing given the potential synergies, we believe Titan International was protecting shareholder value," he wrote in a client note.
The analyst reiterated his "Outperform" rating and $36 price target.
Shares rose $2.27, or 9.4 percent, to end at $26.43. The stock has ranged from $19.26 to $37.99 over the past year.
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