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Thursday, June 26, 2014

Relational amasses stake in Manitowoc, to urge split -sources, (NYSE: MTW)

Activist investment firm Relational Investors LLC has amassed a roughly 8.5 percent stake in Manitowoc Co Inc and is urging the crane and food equipment company to break itself up, according to people familiar with the matter. Relational, founded by investor Ralph Whitworth, believes that Manitowoc should spin off its high-margin food service equipment business into a separate entity in order to boost its stock prices, the people said on Thursday.The Manitowoc, Wisconsin-based company has a market capitalization of roughly $4 billion and has two main divisions, Manitowoc Cranes and Manitowoc Foodservice.The company makes several lines of cranes for heavy construction and commercial construction and also produces boom trucks. The foodservice division makes ice machines, refrigerators, deep fryers and other cooking equipment for businesses such as restaurant chains.In January, Relational met with company management to recommend Manitowoc hire advisors to spin off its food business, according to the people familiar with the matter. Manitowoc's board has so far declined Relational's request for a meeting, the people added.

The Manitowoc Company, Inc. (MTW) is a multi-industry, capital goods manufacturer. Shares of MTW traded higher by 1.4% or $0.41/share to $29.71. In the past year, the shares have traded as low as $17.85 and as high as $33.46. On average, 2101610 shares of MTW exchange hands on a given day and today's volume is recorded at 1451284.