Tuesday, May 3, 2011

Terex engages hostile takeover bid for Demag

Heavy equipment manufacturer Terex has engaged itself in a $1.3 billion hostile takeover attempt for Germany’s Demag Cranes after a breakdown in negotiations failed on the heels of an apparent agreement between the two firms that include the port industry among their respective market sectors.

"It is likely that Terex will have to increase the offer price in order to be successful," said DZ Bank analyst Karsten Oblinger in an interview with Reuters.

Oblinger said that Finland-based Konecranes could counterbid, although it had attempted merger talks in October of last year with Demag but was turned down, according to Reuters.

Terex has competed with the likes of Caterpillar and Komatsu with cranes and earth-moving equipment.

In 2009, Terex entered the harbor crane market after acquiring Italy’s Fantuzzi.

Terex has said acquiring Demag would give it access to more market share in the global container-handling equipment business.

For the full Reuters story: www.reuters.com

 

 

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