Shareholder Sues Bucyrus Over Caterpillar Deal

Bucyrus shareholder sues, saying Caterpillar offer of $92 per share is not enough for the combined Bucyrus and Terex mining companies

Bucyrus International Inc., a maker of mining equipment, was sued by a stockholder seeking more money in a proposed $92-a-share takeover by Caterpillar Inc. The price "is unfair and inadequate because, among other things, the intrinsic value of Bucyrus’s stock is in excess of the consideration offered" based on the company’s prospects, lawyers said in a complaint filed on behalf of investor Margaret C. Richardson in Delaware Chancery Court in Wilmington.

Caterpillar's offer is a 32% premium over the most recent closing price for Bucyrus stock at the time both boards of directors signed the agreement. Bucyrus paid $1.3 billion to acquire Terex's mining equipment group less than a year ago.

(More at Bloomberg.com . . . )

Latest