Terex increased its offer as part of a Business Combination Agreement signed today (16th) between the two companies after the approval by their relevant boards. It represents a 29.3% premium over the three-month weighted average share price before the original tender offer and a premium of 53.5% over the price on 6 October 2010, the last day of trading before takeover speculations arose.
At the beginning of this month (June) the Demag’s Management and Supervisory Board unanimously recommended non-acceptance of the original unsolicited offer made by Terex in May, stating that it was “not being in the interests of Demag Cranes”.
In a statement today, Demag now says that the agreement ensures broad operational and strategic autonomy even after Terex has acquired a majority interest in the company. Commenting on the change of direction, Demag Cranes’ CEO, Aloysius Rauen, said, “Apart from a significant increase of the offer price, we achieved important assurances by Terex regarding the interests of our employees, which in total, significantly improves the original offer.”