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Martin Marietta Materials Kicks Off Hostile Bid for Competitor

A company that products stone and gravel for concrete is involved in a hostile

The second-largest producer of construction gravel and stone announced on Monday that it would be seeking to merge with its main competitor in a hostile bid valued at more than $4.6 billion, according to The New York Times

In a statement, Martin Marietta Materials' CEO and president,

The second-largest producer of construction gravel and stone announced on Monday that it would be seeking to merge with its main competitor in a hostile bid valued at more than $4.6 billion, according to The New York Times

In a statement, Martin Marietta Materials' CEO and president, Ward Nye, said the company was appealing to Vulcan Materials' shareholders, "after Vulcan ceased participating in private discussion toward a negotiated transaction" that started more than a year and a half earlier.

A letter from Nye, addressed to Vulcan's CEO and chairman Donald James, noted that Martin Marietta believes combining the two companies is a wise option considering the economic fragility and uncertain recovery of government spending on infrastructure.

"Combining our two complementary companies makes excellent industrial sense and establishes a U.S.-based company that is the global leader in our industry," Nye wrote.

Other failed buyout attempts have resulted in hostile bids. Reuters reports that investor Carl Icahn is pursuing the Commerical Metals Company, of which he currently owns a 10 percent stake. According to the news outlet, the metal recycling company had walked away from a $1.73 billion bid because it was lower than the organization's value.  

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