15.03.2016

Zoomlion ups its offer for Terex

Chinese crane company Zoomlion has raised its offer for Terex by a dollar a share taking it to $31 and raising the overall price it is putting on the company to $3.4 billion.

Unconfirmed reports suggest that Terex has asked for $32.75 per share in order to officially end its merger agreement with Konecranes and agree a deal with Zoomlion.
While the Terex share price increased on the news of the increased offer they are still trading well below the offer rate at $23.40 - suggesting that no one seriously believes that the negotiations are close to reaching any sort of conclusion.

Terex has maintained that a merger with Konecranes will provide shareholders with more value than a sale to Zoomlion over the longer term. Zoomlion has tried to overcome this by suggesting that it might include some sort of contingent value rights that would entitle Terex shareholders to further payments, if the combined company's shares or financial performance achieved certain targets. Alternatively it could allow shareholders to retain a share in the business from which they might obtain a future upside benefit.