Rinker buoyed by housing data
Rinker has been boosted by news of the the US housing market will start picking up in 2007, which accounts for about 80 per cent of its revenue, as it fights off a $16.8bn takeover bid.
Mexican predator Cemex has insisted any recovery in the US is unlikely this year, but recent data from the US indicates housing growth will pick-up in mid-2007.
This would tally with Rinker’s defence strategy that the company is undervalued because of the housing weakness and it is worth more than Cemex’s current $16.70-a-share offer.
Published under Cement News
