Embattled Astec slashes dividend
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.ASTEC (BSR), the electronics group which was the subject of a controversial shareholder battle earlier this year, yesterday slashed its dividend and issued a profit warning after announcing a $325m acquisition. "We thought the second quarter was going to be the bottom, but the third quarter is down even further," said Howard Lance, Astec's chief executive. "With the overcapacity in the market, the pricing has got more aggressive."
Meanwhile, Astec announced plans to buy the Advanced Power Systems Business of Nortel, a Canadian telecom equipment group which makes power conversion products for a variety of Nortel products, for $325m in cash.
Earlier this year Emerson Electric, the US giant which owns 51 per cent of Astec's shares, attempted to buy out the remaining minority. At the time, Emerson warned that if its offer - which was pitched at the market price of 111p per share - was rejected, it would use its clout on Astec's board to stop dividend payments.
Institutional shareholders, including Electra Fleming, Royal & SunAlliance and Equitable Life - challenged the threat in the courts, but their case was thrown out.
Since then, Astec shares have drifted downward. Yesterday, they closed down 2.5p at 80p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments