Metal Management garners EMR'S interest.European Metal Recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. Ltd., Warrington, U.K., has sent a letter to Metal Management Inc.'s board proposing a legal and financial due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. study of Metal Management to pursue a business combination. In the Aug. 8 letter, European Metal Recycling (EMR (ElectroMagnetic Radiation) The emanation of energy from everything in the universe. Although the EMR from electrical and electronic devices is typically measured for practical, every-day situations, every object, including humans, emanates energy. ) said formulation of a specific plan or proposal for Chicago-based Metal Management is not guaranteed. The letter appeared in an SEC filing. In the letter, EMR noted, "As we discussed today, we believe that a business combination of EMR and Metal Management would be in the best interests of Metal Management, its stockholders and EMR. As such, we propose that we and our advisors immediately begin a financial and legal due diligence review of the Company." The firm said its plans for Metal Management may include privately negotiating transactions of Metal Management's securities, open-market purchases open-market purchase The buying of stocks and bonds in the securities markets. For example, in order to satisfy the sinking fund requirement of a bond indenture, the issuer may call securities from investors or make open-market purchases. , proposing a business combination including a merger, a tender offer or waging a proxy battle. The filing added that EMR did not wish to make a hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. attempt. The letter concluded by noting that Metal Management experienced a significant run-up in its stock price after EMR purchased significant shares. As of early June, EMR has owned 1.5 million Metal Management shares for a 14.8 percent stake in Metal Management, whose operations are almost entirely in the U.S. EMR bills itself on its Web site as "one of the world's largest recycling companies--and the largest in the U.K." It currently handles more than 8.5 million tons of scrap metal each year at 65 facilities, predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. in the U.K., with a half dozen in Belgium and Germany. |
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