Texas Industries Rallies on Sale Talk

Shares of Texas Industries (NYSE:TXI) jumped 10% on Friday after a report that the building materials company is exploring a sale.

According to Bloomberg News, Dallas-based Texas Industries is working with Citigroup to find a buyer.

Its largest shareholders, Southeastern Asset Management and NNS Holding, have been looking to sell their stakes but may not get a price they feel is sufficient, the report added. Together, the two investors own more than 51% of the company.

NNS Holding is the investment vehicle for Egyptian billionaire Nassef Sawiris.

Spokespeople for Texas Industries and Southeastern Asset Management declined to comment on the report. A representative of NNS Holding didn’t respond to a request for comment.

Texas Industries, which had a market value of $1.68 billion as of Thursday’s close, operates in its home state and California, the two largest cement markets in the nation.

Talk of a possible sale comes as construction activity in the U.S. begins to rebound. New home sales rose 25% in October versus the previous month.

In October, Texas Industries said it swung to a profit in the first quarter, as sales climbed 33% to $233.1 million.

Shares were trading at $64.44 early Friday afternoon, up $5.90. The stock already gained 14.8% on the year as of Thursday.