Martin Marietta Vs. Vulcan: The Latest
- Written by Mark Kuhar
January 11, 2012 – In the continuing war of words between Martin Marietta and Vulcan Materials, Vulcan got in the last word . . . or should I say, the latest last word. Martin Marietta provided shareholders and interested parties with a new presentation that outlined its vision for the deal. "We believe very strongly in the compelling benefits of the proposed business combination," said Martin Marietta President and CEO Ward Nye. In response, Vulcan issued the following statement: "Martin Marietta's presentation provides nothing new on the merits of its hostile offer. Vulcan held talks with Martin Marietta over many months and determined that a combination did not make economic sense for the company and would not enhance value for Vulcan shareholders. Martin Marietta misrepresents the potential value from the combined company: its synergy assessment is unrealistically aggressive and it ignores the value destruction resulting from divestitures. Vulcan's assessment of antitrust risk makes use of its experience on the most relevant transactions in the industry, and Vulcan's assessment of its standalone prospects is based on analyst consensus views. We encourage our respective shareholders to carefully analyze the validity of Martin Marietta's claims. Vulcan will continue to meet with our shareholders and share our vision for Vulcan's future." In another instance of oneupsmanship, you may have noticed that Martin Marietta's special website on its proposed merger with Vulcan can be found at www.aggregatesleader.com. Vulcan's special website about the deal, put up after Martin Marietta's, is www.realaggregatesleader.com. At least someone has a sense of humor about it all.