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CALIFORNIA | BRIEFLY: FARM EQUIPMENT

Dutch Firm to Acquire U.S. Rival Case

May 18, 1999| Times Wire Services

New Holland, a Dutch maker of farming equipment, reached an agreement to buy U.S. rival Case Corp. for $4.3 billion, a deal that would create a formidable competitor to industry leader John Deere Co. The combination of the two companies, which together had sales of $11.8 billion last year, also creates the third-largest producer of construction equipment in the world. Under the agreement, New Holland will pay $55 a share for Case's outstanding stock, a 23% premium over Friday's closing price. Italian auto maker Fiat, which owns 69% of New Holland, would retain a 71% controlling interest in the new company, which will be based at Case's headquarters in Racine, Wis. On the NYSE, Case rose $3.69 to close at $48.50, while New Holland fell $1.19 to $16.38.

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