Financier Carl Icahn plans to buy more than $15 million, which is less than 10%, of
common shares outstanding.
Trinity, which manufactures, markets and leases products in the construction, transportation and industrial sectors, said it intends to continue its own share repurchase program through which it has already repurchased more than 500,000 shares this quarter. The company has about 37.4 million shares outstanding.
The company's stock hasn't been near its 52-week high of $33.25, which it hit about a year ago, since last January, when it started a steady decline to its year low of $18.19 on Aug. 17. The news today of Icahn's interest was pushing the stock up. It was recently trading up $1.50, or 8%, to $21.06.
Trinity's chairman and CEO, Timothy Wallace, said he believes Trinity's stock is undervalued at this time mainly because of the rail supply industry's cyclical nature.
In August, Icahn said he would buy at least $15 million of
stock. And that deal was announced less than a month after he announced a similar deal to acquire shares of laser eye surgery company
. Check out
coverage of the GM investment.