Texas Industries, Inc. (NYSE:TXI) may be targetted by Nassef Sawiris/NNS Holding, who disclosed a 2.3% stake in the company today via a 13D filing with the SEC. Mr. Sawiris also disclosed a series of derivative holdings, which (if exercised) would give him a 9.1% stake in the company. In the 13D filing, Nassef opened up the possibility for a sale of the company:

"The Reporting Persons purchased the Securities based on the Reporting Persons’ belief that the Issuer’s common stock at current market prices is undervalued and represents an attractive investment opportunity. However, Mr. Sawiris has had communications with the Issuer and it is anticipated that Mr. Sawiris may, from time to time, have discussions with management, the board of directors and other shareholders of the Issuer.

Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of shares of the Issuer’s common stock at prices that would make the purchase of additional shares desirable, the Reporting Persons may endeavor to increase their position in the Issuer through, among other things, the purchase of shares of the Issuer’s common stock or options on such shares on the open market or in private transactions, through a tender offer or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.

The Reporting Persons intend to actively monitor efforts by management to increase stockholder value. The Reporting Persons may also decide in the future to propose a transaction whereby all or a portion of the Issuer be sold, and in connection therewith the Reporting Persons may seek to participate in such transaction or seek to acquire control of the Issuer in a negotiated transaction or otherwise. If it should acquire control of the Issuer, it may transfer all or part of it to affiliated or unaffiliated persons. The Reporting Persons also may seek in the future to have one or more representatives elected to the board of directors or to propose other matters for consideration and approval by the Issuer’s stockholders or board of directors." (Read More)

It is worth noting that Mr. Sawiris is involved in the heavy materials business himself, which enhances the odds of a potential sale of the company. And although Texas Industries isn't particularly cheap at these levels, it does have a nice piece of the heavy materials market share in the southern United States. This is definitely a stock to watch as this situation unfolds, as any sale of the company would command a premium to the current market price. The stock is currently up over 3% on the news.

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