NEW YORK (TheStreet) -- Manitowoc (MTW) shares are surging in after-hours trading on Thursday, up 11.6% to $33.17, following reports that an activist investment firm wants to break up the company.
Relational Investors plans to announce that it has secured an 8.5% stake in the capital goods manufacturer, according to a report by The New York Times.
Relational wants to split the company's industrial equipment arm in two, according to the report.
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Separately, TheStreet Ratings team rates MANITOWOC CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MANITOWOC CO (MTW) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."