NH and Case being bought out?
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froggy
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Don't know about Case and New Holland, but Agco had just been given its European Commission approval to go ahead with the deal to buy the Finnish tractor maker Valtra from the Kone Corporation.
Bob_Skurka
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I know nothing about the rumor, but FIAT Corp is in deep financial trouble. Their Fiat car division is bleeding cash badly and draining resourses from the rest of the company. They recently announced a recommitment to the auto division, and they do own Ferrari and Maserati. Ferrari is profitable, Maserati is marginally profitable and probably will improve, but Fiat is simple draining cash. Their tractor division is making money, but with mixed results. There is an agreement with General Motors, that dates back a few years that Fiat claims would require a major stock purchase by GM which would provide cash, however GM is contesting the legitimacy of the agreement and how it would be applied. Consequently, it might be possible that the Case/NH division would be sold to raise cash for an infusion into the core automobile division. Case/NH is an attractive company on its own with marginal parallels to the auto industry and marginal technology crossovers. Shedding Case/NH could raise a large amount of cash for Fiat auto.
Old_Hickory
Platinum Member
Go to this link below and you will be able to read some of what might be going on at CNH.
CNH stock message board on yahoo
CNH stock message board on yahoo
EquipmentJunkie
Platinum Member
I think that you would sooner see a purchase of the ag side of CNH by a company from Peoria, IL than one from Duluth, GA.
In addition, I don't think that you would see USA or European government approval for a AGCO/CNH merger. Shoot, look at the divestments that both companies have needed to make to satisfy government regs in smaller deals. (Buhler, McCormick, Same, Deutz...should I go on?)
In addition, I don't think that you would see USA or European government approval for a AGCO/CNH merger. Shoot, look at the divestments that both companies have needed to make to satisfy government regs in smaller deals. (Buhler, McCormick, Same, Deutz...should I go on?)
Robert_in_NY
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CNH is not being sold. Fiat is still trying to get things turned around but they are making money with the ag division while losing it in the car division. If they did sell off a company they would most likely sell the ag division as it is easier to sell a profitable company. However, unless John Buhler came up with a lot of cash, I don't see too many companies being able to buy CNH. John Deere would never be allowed nor would Agco. Cat has the pockets to do it but they don't know what they want to do over there. Claas just bought Renault and I don't think they could afford to take on CNH right now. Argo (who owns Landini and McCormic) might be able to integrate CNH but I don't know if they have deep enough pockets to take on CNH. It is impossible to split up CNH now as they are all common platform so if you buy New Holland you are getting Case-IH as well. One company relies on the other. However, someone might come in and try to buy just the name and possibly one or two tractor models (like Argo did with the McCormick name and the original McCormick tractors which were Case design).
In the end, Fiat will not sell CNH as it is making them money now. Very few companies can afford to buy CNH as a whole and the ones who can would not be allowed.
In the end, Fiat will not sell CNH as it is making them money now. Very few companies can afford to buy CNH as a whole and the ones who can would not be allowed.
JayC
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After reading some of the posts in that forum you provided, the future doesn't look good for CNH. /forums/images/graemlins/frown.gif
Bob_Skurka
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Don't fret about the posts on the Yahoo! CNH Message Board being so negative, the future for CNH is actually pretty strong. But investors in the stock market, especially the day traders and speculators, look at companies in a totally different light than many other do. CNH, as I posted earlier is making money for FIAT Corp, CNH has had some mixed results in some markets and has had some issues to contend with, but it is showing a healthy margin from everything I can see.
EquipmentJunkie
Platinum Member
JayC, I wouldn't worry about CNH. CNH has turned the corner, I think.
Yeah, Fiat has goofed things up in the auto business, but their equipment business is strong.
If the day of reckoning comes, what division do you think Fiat would spin off if they needed cash quickly? I'd bet CNH is near the top of the list. They would have to divide the ag and construction divisions, but no big deal.
Besides, Holt and Best joined forces in the early part of the 20th century to form Caterpillar because they were beating each other up as competitors. Mergers aren't always bad...they often make sense.
Yeah, Fiat has goofed things up in the auto business, but their equipment business is strong.
If the day of reckoning comes, what division do you think Fiat would spin off if they needed cash quickly? I'd bet CNH is near the top of the list. They would have to divide the ag and construction divisions, but no big deal.
Besides, Holt and Best joined forces in the early part of the 20th century to form Caterpillar because they were beating each other up as competitors. Mergers aren't always bad...they often make sense.
JayC
Veteran Member
Well, that's nice to know their future is better off than is presented. I would hate to see such a fine company go down the tubes.
