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Martin Marietta Materials Inc. said Monday that it will appeal a Delaware Court of Chancery ruling that would delay its nearly $5 billion hostile bid for competing asphalt, concrete and stone supplier Vulcan Materials Co.
Martin Marietta said its proposed plan to buy the larger Vulcan Materials has "undeniable strategic merits" and voiced disappointment in Friday's ruling, which puts the bid on hold for four months.
On Friday, Vulcan praised the ruling, saying it can build shareholder value on its own, in part by executing a plan announced in February that includes selling some of its assets.
Both companies make construction aggregates like crushed stone, sand and gravel, as well as concrete and other building materials. Vulcan said combining the two would create the largest U.S. producer of construction aggregates.
Martin Marietta, which said it is the nation's second-largest supplier of construction aggregates, offered $36.69 per share for Vulcan in December, valuing Vulcan at about $4.74 billion.
Vulcan sued Martin Marietta, claiming the bid was illegal because it relied on information Martin Marietta had no right to.
The Delaware court halted Marietta's takeover attempts for four months.
Martin Marietta said that, if its appeal is successful, it plans to resume pursuing its and trying to elect candidates to Vulcan's board of directors.
Vulcan, based in Birmingham, Alabama, said
Shares of Martin Marietta rose 37 cents to $79.80 by midday.
Vulcan fell 3 cents to $41.34.