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Non-Tech : New Holland and the Ag Equipment Group
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To: James Clarke who wrote (48)1/23/1999 9:19:00 PM
From: Bob Rudd  Read Replies (1) of 113
 
<<farmers don't go to construction dealers. A big part of it is location>>
It would seem that Ag equipment is far more a shopping than a convenience good..If the dealer offers a must-see mix of product, the farmer will travel a bit to shop and compare. With AG's lines complementing the CAT line, there would be a far more compelling mix to draw the farmer in. When the farmer sees the Cat line, maybe he buys up a bit. Thus AG might enhance the draw of Cat's current locations as well as adding others.
And AG is probably the cheapest of the bunch.

Thanks for the comeback. The above is offered not in disagreement, but just to offer possible alternative perspective. Some good managements like to think outside the box a bit on acquisitions.

Regards,
Bob
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