uhler Industries gets takeover bid from Russian firm
Last Updated: Tuesday, July 24, 2007 | 3:45 PM CT
CBC News
A $150-million takeover bid from a Russian company sent shares of agricultural equipment maker Buhler Industries Inc. up more than 13 per cent on Tuesday.
The stock gained 81 cents to finish at $7.01 on the TSX.
Buhler Industries 3-month stock chart
Winnipeg-based Buhler said it had received an offer from the Russian Combine Factory Rostselmash Ltd. to purchase 80 per cent of its outstanding common shares.
The offer would see the Russian firm buy 51 per cent of the outstanding shares at $7.50 by Sept. 30. From 2009 to 2012, the Russian company would buy 7.25 per cent of Buhler's remaining common shares at $7.60 by Sept. 30 each year.
Buhler said its board of directors is "viewing the offer positively" and has struck a committee to study it.
Combine Factory Rostselmash Ltd is a major combine manufacturer located in Rostov-on-Don. It produces over 17 per cent of the total world production of agricultural combines.
Buhler employs about 800 people in Canada and the United States, including 500 in Winnipeg.
John Buhler, who owns 78 per cent of Buhler Industries, said employees should not be worried about their jobs.
"When the largest agricultural wants to buy you, they want to sell your product in their country. And so, I think it will be completely the opposite and sales will go up," he told CBC News.