On Tuesday, Indian tractor manufacturer Tractors and Farm Equipment urged AGCO Corp to immediately act on it’s weakening long-term competitive position.
Tractors and Farm Equipment Limited stated in a U.S. regulatory filing about the presentation it made on the company.
It propelled the company to refresh it’s board and adopt strategic alternatives due to risks falling further behind it’s incumbents.
Moreover TAFE is the largest investor in AGCO Corp holding a 16.2% stake in the agricultural machinery maker.
Further, it demanded that the company appoint three new independent directors to the board.
Besides, the company must appoint new lead independent director with strong board experience.
The goal is to form a committee to supervise the implementation of a strategic plan.
Recent stock price gains of AGCO are primary driven by macro economic tailwinds in the agricultural sector.
However, this shields the company’s otherwise weakened stature in comparison to it’s competitors like John Deere and Kutoba.
Meanwhile, AGCO has a net worth amounting to $9.6 billion with it’s headquarter in Duluth, Georgia at present.
In fact, TAFE is the owner of the company for the last seven years.
The average payment of the Indian tractor manufacturer is worth $48.13 for its stake.
It has witnessed a hike in stock prices up to 103% in the last 52 weeks as per reports.
The trading of the company ended at $129.11 on Tuesday.
In the presentation, TAFE emphasised on strategic missteps that led to a declining market position in Brazil.
This also includes continued sub-scale presence in North America and an unsuccessful investment initiative in China further deteriorating it.
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