Bradken investors embrace Hitachi bid

Investors welcome Hitachi Construction Machinery’s plan to acquire Australian rival Bradken. But some analysts say the deal means shareholders will miss out on a promising turn-around.

Japan’s Hitachi Construction Machinery HCM announced on Monday that it would pay A$3.25 per share to buy a 100% stake in Bradken. That gave investors a 34% premium to the last close and a 90% premium to the 90 days volume weighted average price.

The deal values the Australian company at $688.5 million on a market capitalisation basis, or at an enterprise value of A$976.1 million. It also brings to an end a roller-coaster ride for investors.

Bradken’s share price hit rock bottom at the start of the year after falling more than 90% since January 2012. But following a rapid rise in July, when chief executive...

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