NEW YORK (TheStreet) -- Texas Industries (TXI) rose 8.56% to $74.57, up $5.88 from its previous close of $68.69, at the close of the trading day on Friday after a report that Martin Marietta Materials (MLM) is in talks to acquire the company.
Bloomberg reported that Martin Marietta, the second-largest producer of sand, gravel and crushed rock for construction in the U.S., is in "advanced talks" to purchase Texas Industries, a building materials company. The site reports that a deal could be announced as early as next week. Bloomberg notes a report from last month that Texas Industries, which has a market value of $2 billion, is working with Citigroup (C) to find a buyer.
The talks between Texas Industries and Martin Marietta restarted this week after they hit a rough patch, though it is still possible that the two sides might not reach an agreement. If they do, it could be an all-stock transaction.
On Friday, Martin Mareitta closed at $104.26, down 4.5% or $4.91 from its previous close of $109.17.
TheStreet Ratings team rates Texas Industries as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEXAS INDUSTRIES INC (TXI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and deteriorating net income."