Terex, Already in a Merger Deal, Gets Buyout Bid From Zoomlion
January 26 2016 - 2:40PM
Dow Jones News
Terex Corp. said Tuesday it has received an unsolicited buyout
bid from Zoomlion Heavy Industry Science and Technology Co. worth
about $3.3 billion.
Shares of Terex jumped 51% to $22.67 in afternoon trading as the
Chinese company offered to acquire all shares outstanding of Terex
for $30 a share in cash.
Terex, a maker of construction cranes and motorized work lifts,
had previously entered into an agreement to merge with
industrial-crane maker Konecranes PLC. Terex's board said Tuesday
it continues to back the deal with Konecranes.
Terex said it has struck a confidentiality agreement with
Zoomlion, a Chinese construction equipment manufacturer, and has
entered discussions regarding the proposal. Terex said it wouldn't
comment further until its board has completed its review.
The all-stock deal with Konecranes, first announced in August,
would leave Terex shareholders with 60% of the stock in the new
company, which would be known as Konecranes Terex PLC. The company
would be incorporated in Finland, where Konecranes is based, but
would maintain offices in Westport, Conn., where Terex has its
headquarters.
The deal with Konecranes was expected to be completed in the
first half of this year. Konecranes, which had sales of €2 billion
($2.7 billion) in 2014, supplies cranes for factories, warehouses
and maritime ports.
Terex has been expanding its presence in the factory crane
market in recent years, acquiring Germany's Demag Cranes AG in 2011
for about $1.36 billion. But Terex has struggled since the
recession to consistently deliver higher sales and profit because
of uneven demand for its equipment. The company has revamped its
business portfolio by selling equipment lines and cutting costs to
counter its end-market weakness.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
January 26, 2016 14:25 ET (19:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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