The proposed offer price represents a premium of approximately 41% to the last undisturbed share price, prior to the speculation regarding possible takeover interest in Demag, on 6 October, 2010 of €29.65 (US$44) and a premium of 15% to the closing price on 29 April, 2011 of €36.30 (US$53.87).
In a statement issued by Terex, the company said that Demag’s business is “highly complementary to the existing Terex business and the combination has compelling industrial logic”. The combined entity would have had total revenues of about US$5.8bn in 2010 with a strong footprint in Europe and emerging markets, especially in China.
“By combining our businesses we would add a new product category of industrial cranes and hoists and create the leading worldwide player in port equipment,” said Ronald DeFeo, Terex Chairman and CEO, adding that the Demag products are competitive and innovative.
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