18.08.2015

Terex/Konecranes deal questioned

A number of US based securities lawyers have launched ‘investigations’ into “potential legal claims against the board of directors of Terex regarding possible breaches of fiduciary duties and other violations of law related to the company's entry into an agreement to be acquired by Konecranes”

The companies, which so far include Brower Piven, Faruqi & Faruqi and Rigrodsky & Long, P.A question whether the directors adequately shopped the company around to obtain the best possible value for Terex shareholders, before entering into the agreement with Konecranes. Some claim that the deal potentially may undervalue Terex shares by around $10 a share or more.

Vertikal Comment

It is not unusual for legal firms such as these to ‘test the waters’ after a surprise merger such as this one, in a bid to see if there might be an appetite for a class action or an opportunity to open the transaction up to alternative, more attractive deals. At this stage the launch of such so called ‘investigations’ is not particularly significant, but does show how deals such as this are never done until they are done.