Titan International Inc. has approached the board of Titan Europe plc, which may or may not lead to an offer being made for the whole of the issued share capital of the company.
There can be no certainty that a formal offer will be made for the company, or the terms on which such an offer may be made, says Titan International. "As a result of certain of the directors of Titan Europe being directors of Titan International, an independent committee of the board of Titan Europe plc has been formed for the purposes of considering any such offer if made."
The likelihood of this merger happening could be high, according to C. Schon Williams and Aaron Reeves, analysts for B&T Capital Markets.
"Titan Europe’s stock moved 15% (on July 16, 2012) on the news... and given the intimacy and history of these two companies, a deal could very likely happen, in our view. Recall that CEO Morry Taylor has recently spoken of Titan International being a $4 billion revenue company, and the purchase of Titan Europe would certainly get them a lot closer to this goal."
Titan International, a holding company, owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications. For more information, visit www.titan-intl.com.