SmarTire to Supply Prevost with Bus TPMS
SmarTire Systems Inc has announced that it will supply Prevost buses with tyre pressure monitoring systems (TPMS) that also monitor tyre temperature. The TPMS will come as standard on Prevost’s H-series bus.
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Troika Rates Amtel Shares as Hold
Product NewsTroika Dialog, the oldest investment bank in Russia, has rated Amtel-Vredestein stock as “hold,” with a fair value of $11.06. According to the bank, the company “appears to have the means to deliver significant income growth in 2006.” However, Troika analysts also state their concern that “corporate governance practices, a tendency to grow debt and sudden swings in capital expenditure are holding back its valuation.”
Falcon Tyres Polls Shareholders
Product NewsFalcon Tyres Ltd has said it will seek shareholders’ approval through postal ballot for the proposed indirect change in control of the company. In a notice to the Bombay Stock Exchange, Falcon Tyres said shareholders’ approval was required pursuant to the acquisition of all the shares held by the company’s current backers. The board has appointed Gopinath M R, a practising company secretary, as the scrutiniser for the postal ballot, the notice said.
Olimpia Minority Shareholder to Sell Stake
Product NewsPirelli, a majority shareholder in Olimpia Holding (which in turn holds an 18 per cent stake in Telecom Italia), is to have the chance to enhance its stake when another minority shareholder, Hopa sells its shares. The 16 per cent stake could be bought by Pirelli or a number of other minority shareholders including the Benetton Group, Banca Intesa, UniCredit SpA, Dow Jones reported.
Hayes Lemmerz Sells Cadillac Foundry
Product NewsHayes Lemmerz International, Inc. has confirmed that it has sold Hayes Lemmerz International – Cadillac, Inc, a wholly-owned subsidiary that operates its Cadillac, Michigan facility. The Cadillac operation was sold to a group of private investors and will now be renamed Cadillac Casting, Inc.
Michelin Man Features on Pin Badge Appeal
Product NewsMichelin has worked with transport and logistics charity Transaid to design a set of four exclusive charity pin badges featuring the Michelin Man character. The badges are available from ATS Euromaster service centres across the UK for a suggested donation of just £1 each. Those who donate to Transaid direct will also receive a badge as a thank you.
Amtel-Vredestein IPO to Raise $308 million
Product NewsAmtel is offering as many as 19.23 million Global Depositary Receipts, each backed by one ordinary share, at $13 to $16, the company reported. Russian companies have raised about $3.5 billion in share sales in 2005, more than in the 13 years since communism’s demise, the Interfax news agency has reported.
That stake, which includes as many as 11.54 million new shares, will equate to 29.5 per cent of Amtel, valuing it at as much as $1 billion. The company originally said it would sell 25 per cent of its stock. Now Amtel is offering 19,230,770 common shares, including 7,692,308 existing shares. The remainder of the offering will consist of new shares.
Analysts Change Recommendations for Cooper and Sumitomo
Product NewsDeutsche Bank analysts have published a “buy” rating for shares in Sumitomo Rubber Industries. The bank says it sees potential for the company’s share price to grow in the region of 20 per cent. “SRI’s earnings are much better than expected and the acquisition of TBC Tyres in North America through Sumitomo Corporation brings additional positive aspects,” Deutsche Bank representatives reported.
At the same time the bank’s analysts lowered their expectations for Cooper shares and issued a “hold” rating for the company’s stock. Analysts from Deutsche Bank lowered their expectations to $13.50. “Due to weaker demand the company is obviously not meeting the turnover target this year,” the analysts commented.
Cooper Share Price Falls
Product NewsCooper shares fell six per cent after the company withdrew its third-quarter earnings forecast, thestreet.com reported. The announcement was said to be in response to a number of factors including: “softer industry demand in the North American replacement tyre market; changes in raw-material costs; higher shipping and transportations costs; and higher energy costs,” the company said. In August, Cooper predicted it would post third-quarter earnings of between 10 and 14 cents a share, including a charge of 8 cents a share related to a strike at one of its Arkansas tyre plants and a loss of 4 cents a share related to an “unusual tax rate.” Analysts had been expecting earnings of 9 cents a share. As a result of the announcement, share value dropped 81 cents to $13.74
Titan Buyout Deal Surprises USW
Product News(Akron/Tire Review – Freeport Journal Standard) The $18 per share “cash merger” offer by an New York private equity firm for Titan International apparently caught the United Steelworkers (USW) well off guard, leaving the national union and its Freeport, Illinois, local scrambling for information.
Analysts Downgrade Bridgestone
Product NewsDeutsche Bank analysts have downgraded Bridgestone shares to hold. The news comes after the Japanese company’s share price reached the analysts’ target level. Bridgestone shares are now rated as ‘hold,’ with a modified target price of 2450 yen against the previous level of 2500 yen.
Balkrishna to Invest £39 million in Expansion Plans
Product NewsTyre manufacturer, Balkrishna Industries Ltd says it will invest 3 billion rupees (£39 million) on expansion plans. The board of directors has reportedly approved the plans which include increasing tyre manufacturing capacities at Bhiwadi, Waluj and Chopanki plants to 100,00 tonnes per annum against 60,000 presently.
Cooper To Slow Production Due To Hurricaine
Product NewsCooper Tire will have to slow production by approximately 30,000 tyres per day due to raw material supply disruptions associated with Hurricane Rita, analysts have reported.
Continental AG Considers Stock Split
Product NewsContinental AG is mulling over the possibility of a stock split after its shares grew more than fivefold since the spring of 2003, according to an article published in Die Welt, citing chief executive Manfred Wennemer.
Kumho Industrial Now Largest Kumho Shareholder
Product News(Akron/Tire Review) News reports say that Kumho Industrial Co. has bought 7.5 million shares of Kumho Tire Co. for 102 billion won ($99.4 million), making it the tyre company’s single largest shareholder. Kumho Industrial bought the shares at 13,600 won per share from the Military Mutual Aid Association, according to a regulatory filing in Seoul.
