Caterpillar, the largest maker of heavy equipment in the world, moved Monday to capitalize on growing demand in emerging economies for commodities by launching a $7.6-billion US takeover bid for Bucyrus International.
Bucyrus, based in South Milwaukee, Wis., makes equipment used for mining coal, copper, iron ore, oil sands and other minerals.
Bucyrus International 3-month chart
Peoria, Ill.-based Caterpillar has pushed further into China, India and Brazil, as those countries' needs grow for raw materials to feed surging economies and improve infrastructure such as roads.
Last month Caterpillar doubled its third-quarter profit, thanks in large part to growth in those markets.
Caterpillar is offering $92 a share, a 32 per cent premium to Bucyrus's closing stock price on Friday.
The deal, valued at $8.6 billion including debt, is expected to close in mid-2011.
Bucyrus shares had climbed $20.20, or 29 per cent, to $89.82 on the Nasdaq exchange by mid-morning.
Read more: http://www.cbc.ca/money/story/2010/11/15/caterpillar-bids-for-bucyrus.html#ixzz16gDrbgdf
Bucyrus, based in South Milwaukee, Wis., makes equipment used for mining coal, copper, iron ore, oil sands and other minerals.
Peoria, Ill.-based Caterpillar has pushed further into China, India and Brazil, as those countries' needs grow for raw materials to feed surging economies and improve infrastructure such as roads.
Last month Caterpillar doubled its third-quarter profit, thanks in large part to growth in those markets.
Caterpillar is offering $92 a share, a 32 per cent premium to Bucyrus's closing stock price on Friday.
The deal, valued at $8.6 billion including debt, is expected to close in mid-2011.
Bucyrus shares had climbed $20.20, or 29 per cent, to $89.82 on the Nasdaq exchange by mid-morning.
Read more: http://www.cbc.ca/money/story/2010/11/15/caterpillar-bids-for-bucyrus.html#ixzz16gDrbgdf
