Manitowoc Company (MTW)

[economy kills]

HAHA!

Zoomlion Has Other Crane Options -- Mark Talk
5:27 pm ET May 27, 2016 (Dow Jones) Print

17:27 ET - After striking out at buying Terex (TEX), China's Zoomlion could turn its attention to TEX's US rival, Manitowoc (MTW), says William Blair. Zoomlion has said it "will continue to seek strategic opportunities." That could include MTW, which made itself more attractive as a pure crane acquisition by recently spinning off its commercial food equipment unit. MTW's long-slumping crane business makes it a fixer-upper that could look like a bargain if crane demand finally comes back. Applying a 10X EBITA multiple to MTW implies a purchase of $6.50-$6.60 a share, or a 14%-16% premium over MTW's current price. "While an offer from Zoomlion is far from certain, MTW could be an opportunity for speculative investors," Blair says. MTW closed down 1% at $5.68. ([e-mail])

(END) Dow Jones Newswires

May 27, 2016 17:27 ET (21:27 GMT)

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