Tuesday, February 20, 2007
Deutsche Bank comments on Hanson plc (NYSE: HAN) following Vulcan (NYSE: VMC) / Florida Rock (NYSE: FRK) deal. The firm said, "The deal has very positive implications for Hanson. It is the last heavy building materials company with a 100% free float in Europe. It has been the subject of persistent bid speculation (see our previous bulletins). Following the Vulcan-Florida Rock deal, two possible targets are now removed from future speculation. The pending Cemex-Rinker deal could be endangered because Rinker shareholders may demand the same multiples as Florida Rock. This may force Cemex (NYSE: CX) to look elsewhere. Finally, Hanson may look to replicate the Vulcan deal with a merger of equals with another aggregates company.