NEW YORK (TheStreet) -- Shares of Manitowoc Co. (MTW) are surging 11.01% to $32.98 in heavy trading volume after it confirmed it held talks with Relational Investors LLC and will consider the activist fund's proposal to breakup the company.
Relational Investors has an 8.5% stake in Manitowoc and it wants to spin-off its food service business to enhance "strategic flexibility."
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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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: