Tractors and Farm Equipment Limited presses AGCO to refresh board, consider alternatives

Tractors and Farm Equipment Limited, the largest investor in AGCO Corp, on Tuesday again pressed the agricultural machinery maker to refresh its board and consider strategic alternatives as it risks falling further behind its rivals. Indian tractor manufacturer Tractors and Farm Equipment, known as TAFE, said in a US regulatory filing that it made a presentation to the company in which it outlined AGCO's weakening long-term competitive position and urged immediate action. "We believe that material risks exist for AGCO's shareholders in the inevitable cycle downturn and that the Board should proactively focus on minimizing such risk now," TAFE, which is AGCO's largest shareholder with a 16.2% stake, said in the presentation. AGCO's recent stock price gains have been fueled by macro economic tailwinds in the agricultural sector but mask the company's weakened stature compared with rivals like John Deere and Kutoba, TAFE said.