LONDON (July 18, 2012)—Titan International Inc. has approached Titan Europe P.L.C. about opening formal discussions on the potential acquisition of a greater share in Titan Europe by the U.S. company.
Titan International, through its Titan Luxembourg S.A.R.L. subsidiary, owns a 21.8-percent share in Titan Europe, a maker of wheels, undercarriage components and assemblies for tracked and wheeled off-road vehicles.
“There can be no certainty that a formal offer will be made for the company or the terms on which such an offer may be made,” the Titan Europe board of directors said in a statement. The board formed an independent committee to consider any possible proposal.
In its statement, Titan Europe noted some directors serve on the boards of both companies. Titan Europe documents say Titan International Chairman Maurice Taylor and Bill Pillig, vice chairman of Titan International's board, are on the Titan Europe board.
According to London Stock Exchange rules, Titan International has to declare its intention to make a full bid or announce its withdrawal from the process within 28 days..
Kidderminster, England-based Titan Europe has 21 manufacturing and dozens of distribution facilities in Europe, North America, South America, Africa, Asia and Australia. It also distributes Titan- and Carlisle-brand tires in selected markets.