U.S. crane maker Terex (TEX.N) launched a hostile takeover of Demag Cranes (D9CGn.DE) on Monday, pushing shares in its German rival up 23 percent and past its offer price as investors anticipated a bidding war. Terex announced its proposed offer directly to shareholders after Demag management turned its back on talks. It said it would offer 41.75 euros per Demag share in cash -- a 15 percent premium to Demag's closing price on Friday -- valuing its bid at 884 million euros ($1.31 billion). Both Terex and Finland-based crane maker Konecranes (KCR1V.HE) previously expressed an interest in Demag. The latter ruled out a hostile approach earlier this year after being rebuffed by Demag but analysts said Temex's move could prompt the Finnish firm to think again. "From our point of view it is likely that Terex will have to increase the offer price in order to be successful. Furthermore Konecranes could come up with a counterbid," DZ Bank analyst Karsten Oblinger said.
Terex Corporation (Terex) is a diversified global equipment manufacturer of a variety of machinery products. Shares of TEX remained unchanged at $34.78. In the past year, the shares have traded as low as $16.79 and as high as $38.50. On average, 2330320 shares of TEX exchange hands on a given day and today's volume is recorded at 0.
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