Speculation boosts value of Demag Cranes

Last week, reports in the financial world added the name of US mechanical equipment giant Terex Corporation to that of Finland-based Konecranes Plc as having shown an interest in Demag.

According to Reuters this had caused “heightened hedge fund buying as a prelude to a possible battle for control of the German crane maker”, with some 4.7m (22%) of Demag’s shares changing hands.

However, Reuters added that it did not expect Terex or Konecranes to be working on a hostile bid given the high share price.