CORRECT: Agco CEO: Not Pursuing Purchase Of Rival CNH Global
12 Dicembre 2010 - 9:09PM
Dow Jones News
The chairman and chief executive of Agco Corp. (AGCO) said
Friday his farm equipment company isn't pursuing the purchase of
competitor CNH Global NV (CNH, NHL.XE).
Martin Richenhagen said his remarks this week to Italian
business publication MF about Agco's interest in CNH were purely
hypothetical. He said Georgia-based Agco isn't engaged in talks
with CNH nor does he believe the subsidiary of Italian auto maker
Fiat SpA (F.MI, FIATY) is on the market.
"Whenever I'm asked if I'm interested in buying CNH, the answer
is always: 'Yes, but I don't believe they're for sale,'" said
Richenhagen in an interview with Dow Jones Newswires.
CNH, which also produces construction machinery, is the world's
second-largest manufacturer of farm tractors and combines behind
Deere & Co. (DE). CNH, which is based in suburban Chicago,
builds farm equipment under the brand names Case IH, New Holland
and Steyr.
Agco is a distant third in the global farm-machinery market,
though it is the leading tractor company in Brazil, one of world's
largest producers of farm commodities. Agco's brands include Massey
Ferguson, Challenger, Fendt and Valtra.
Rumors about the sale of CNH or Fiat's commercial truck unit
Iveco have percolated since Fiat gained a stake in U.S. auto
company Chrysler Group LLC in 2009. Some analysts have speculated
that Fiat might sell CNH and Iveco to generate cash for its
Chrysler investment.
In the aftermath of the MF report about Agco's interest in CNH,
Fiat Chief Executive Sergio Marchionne reiterated that CNH isn't
for sale.
"No, I don't want sell it," Marchionne said this week in an
interview with Dow Jones Newswires. "There is no reason to sell it.
CNH is a great business."
In January, Fiat will split into two separately listed
companies, one for its automotive business and the other comprising
CNH and Iveco. Observers have said the reorganization of the
company further diminishes the chances that Fiat would sell either
CNH or Iveco.
Richenhagen said Agco remains interested in acquisitions, but
considers the outlook for deals next year is highly limited.
Agco last month agreed to pay $91 million for the 50% stake in
combine company Laverda that it didn't already own. The Italian
company has been building combines for Agco in Europe since 2004.
Agco bought its original 50% stake in Laverda in 2007.
Agco last month also said that it acquired a 50% stake seeding
and tillage implements sold by Amity Technology LLC.
Agco's stock closed Friday down 0.7% at $47.19, while shares in
CNH closed up 2.4% at $46.22.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com
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