Hedge Fund to Take Shares in Terex

July 28, 2016 - CNBC reports today that hedge fund Marcato Capital Management plans to announce a new 5.1% position in crane maker Terex. Shares of Terex jumped more than 4% to around $24, upon the announcement, and were briefly halted after the report but resumed trading almost immediately.

 

CNBC’s source says that the stake is based on Marcato’s belief that Terex is worth more than its current price, and that selling certain parts of its industrial business and streamlining others through restructuring, cost savings, and other measures could improve margins substantially.

 

“We welcome Marcato as a shareholder and appreciate their confidence in our business and management,” a Terex official told CNBC. “We look forward to listening to ideas that could help improve our company and enhance shareholder value.”

 

Earlier this month, Terex Cranes announced that it will expand North American production at its Oklahoma City facility. The company closed production of its rough-terrain cranes, truck cranes, and boom trucks in Waverly, Iowa, and said that production in OKC is expected to commence in September.