Terex approach boosts Demag’s share

Terex made its hostile takeover bid directly to shareholders after talks with its German competitor apparently failed; by the end of the day Demag’s share price rose 21% to €43.85 (US$65.25) as shareholders anticipated a bidding battle.

Late yesterday Demag Cranes confirmed the approach by Terex, stating that the announcement [by Terex] was unsolicited and that the [Demag] board would continue to inform shareholders without delay on all meaningful developments. It added that in accordance with its financial calendar, it would publish its results for the second quarter of the financial year 2010/2011 tomorrow (4 May).

Last October the US manufacturer refused to be drawn on whether it had “shown an interest in Demag” when asked by CM, following rumours in the financial market that its name had been linked to a similar move by Finland-based Konecranes Plc.