NEW YORK -- After disclosing his 7.8% stake in Manitowoc Co. this week, billionaire investor Carl Icahn is calling on the company to split its crane and foodservice businesses, according to a MarketWatch report.
In a filing with the Securities and Exchange Commission, Icahn said he may seek board representation to move the split forward. Icahn, through various investment vehicles, has amassed a stake of 10.5 million shares in the Manitowoc, Wis.-based company worth $146.6 million. The investor has not yet held talks with the company.
In the filing, Icahn stated that he believes the company is undervalued and thus intends “to have discussions with representatives of [Manitowoc’s] management and board of directors relating to separating the … crane and foodservice segments into two separate companies.”
Following Icahn’s filing, shares of Manitowoc Co. rose sharply (+9.42%) in premarket trade Monday. Shares are down 10.3% on the year.
Founded in 1902, the Manitowoc Co. Inc. is a multi-industry, capital-goods manufacturer with over 100 manufacturing, distribution and service facilities in 24 countries. The company is recognized globally as one of the premier innovators and providers of crawler cranes, tower cranes and mobile cranes for the heavy-construction industry, which are complemented by a slate of industry-leading product support services.
In addition, Manitowoc is one of the world's leading innovators and manufacturers of commercial foodservice equipment, which includes 24 market-leading brands of hot- and cold-focused equipment, including equipment for convenience stores. In 2013, Manitowoc’s revenues totaled $4.0 billion, with more than half of these revenues generated outside of the United States.
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