Agco's Time To Reap?

It has been a dry season in farm implements. Demand has slowed due to soft commodity prices and the drop in crop exports to Asia. Shares of AGCO (AG), a maker of agricultural equipment, have languished between 6 and 8 for much of 1999. But in April they started pushing up, closing at 10 1/4 on May 18. One reason: On May 17, New Holland agreed to acquire Case, another big name among farmers, for $4.3 billion. The deal awakened investors to other possible targets in the struggling industry. AGCO, say some analysts and money pros, could be the next buyout bait.

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