Post Hitachi Takeover

  1. 3 Posts.
    The focus on BKN has been on a new offer which I believe will not come as I believe Hitachi has a specific reason for this acquisition.
    Hitachi CM is a global player in the Heavy Equipment market, particularly the mining sector. One of its biggest competitors is Caterpillar USA. A few years ago they acquired for $8 bill BUCYRUS Int Inc based in Milwauke. They manufactured a wide range of products including a similar range to BKN. Upon taking over the company Caterpillar announced they had become a "global full line supplier" to their customer base.
    To compete with Caterpillar, Hitachi needs to have the same offering and BKN is an obvious choice, I would suggest visiting the web sites particularly the press release by Caterpillar concerning Bucyrus.
    HitachCM will have control of BKN above 50.1% . The unknown is how many shareholders will NOT sell.

    I have a view that once Hitachi has control, and BKN stays listed there is substantial upside due to,
    1. As well as growing their current markets, BKN will have access to Hitachi customers through a OEM supply arrangement. This will substantially increase revenue both for short and long term.
    2. The current restructure can facilitate any substantial growth.
    3.The production facilities particularly in India where HitachiCM has a strong presence will be upgraded to make low cost high quality product.
    4. The balance sheet will be stronger as well as the access to loans for expansion and production upgrades.

    At the upcoming AGM it would be interesting to ask,
    "If Hitachi obtains a controlling stake in BKN, what effect will this have on the revenue and profit to BKN if it becomes a supplier to Hitachi. Will any such arrangement substantially effect the company financial results and if so, will this be announced to the market"
    Current shareholder.
 
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