Titan Europe Offered $375 million in Takeover Bid

British-based OTR wheelmaker Titan Europe has received an all-share takeover offer from parent company Titan International. The announcement comes four years after the company was floated by Titan International, which kept a 17 per cent stake. According to market observers, the offer equates to 230 pence per share offer more than 100 per cent more than Titan Europe’s 111p closing price on Friday 11 April.

Illinois-based Titan International is reportedly interested in buying back Titan Europe because market conditions have led it to re-focus on large size off-road wheels, having decided to focus on smaller wheels in 2004.

“Titan Inc’s shares have risen by around a third in the last year. But Titan Europe’s shares have gone the other way following a significant profits warning in November.
Its shares have halved since last April,” the Guardian newspaper reported.

News wires reported that buyers flocked in for Titan Europe stock, which surged 69 pence to 180 in response to Titan International’s so-called “mop-up” move. The tyre maker is offering one share for every 8 Titan Europe shares.

By virtue of the fact that Maurice Taylor, Erwin Billig and Michael Akers are directors of both Titan Europe and Titan International, the possible offer is being considered on behalf of Titan Europe’s shareholders by the remaining Titan Europe directors, being Philip Gartside, Cecilia La Manna and Vincent Wicks.