Southeastern Asset Management has cut its stake in Vulcan Materials Company, according to a 13D filed with the SEC. The famous value firm headed by Mason Hawkins now owns 9,911,581 shares, or 7.7% of the Florida based company. According to Southeastern’s 13F filing for the third quarter, the firm owned 12,156,368 shares of Vulcan Materials, or 9.38% of outstanding shares. Southeastern was the third largest shareholder of the company, they are now number four. Another legendary value firm, Dodge & Cox, is now the third largest shareholder with 11,194,425 shares.
Vulcan Materials Company(NYSE:VMC) is an Alabama corporation and the nation’s largest producer of construction aggregates: primarily crushed stone, sand, and gravel. The company has ~300 aggregates facilities. The company is also a major producer of asphalt mix and ready-mixed concrete as well as a leading producer of cement in Florida.
In December 2011, Martin Marietta Materials, Inc. (NYSE:MLM) made a bid for Vulcan Materials. An article in last week’s Wall Street Journal reports that Martin Marietta Materials is unlikely to renew its hostile bid for Vulcan Materials, according to “people familiar with the decision.” Based on the context of the article, it would appear that Martin Marietta Materials, Inc. (NYSE:MLM) is merely more likely to pursue a friendly deal than a hostile one. The piece notes that Martin Marietta Materials, Inc. (NYSE:MLM) still thinks a deal would make sense, but reports that the company has neither approached Vulcan Materials Company(NYSE:VMC) regarding a friendly merger nor developed a plan for such an approach.
For the nine months ended 30 September 2012, Vulcan Materials Company(NYSE:VMC) revenues increased less than 1% to $1.96B. Net loss before extraordinary items increased 18% to $58.4M. Revenues reflect Aggregates segment increase of 26% to $1.53B, Concrete segment increase of 40% to $395.3M. Higher net loss reflects Recovery from (charge for) legal settlem increase from $46.4M (income) to $0K, Exchange offer costs increase from $0K to $43.3M (expense).
Disclosure: No position