Hong Kong Firm Hikes Cummins’ Stake to 13.5%
A Hong Kong investment concern has increased its stake in Cummins Engine Co. to 13.5%.
Industrial Equity (Pacific) Ltd. said in a filing Friday with the Securities and Exchange Commission that it had purchased another 204,700 shares of the Indiana diesel engine-maker’s stock since last Tuesday.
The purchases, all on the New York Stock Exchange at prices ranging between $62.51 and $63.17, gave IEP a total of 1.38 million shares of Cummins common stock, raising its stake from 11.5% to 13.5%.
IEP did not indicate why it was increasing its stake in Cummins, which earlier this year headed off a potential takeover when descendants of the company’s founder bought out the stake of a British conglomerate.
On Wednesday, IEP, a Hong Kong-based concern with manufacturing, restaurant and automobile retailing subsidiaries in the United States, Britain and France, announced that it was pushing its initial stake of 9.9% to 11.5%.
On Thursday, the Columbus, Ind.-based Cummins announced that it expects a substantial third-quarter loss in part because of a sharp drop in the demand for North American trucks.
