U.S. construction machinery maker Terex Corp (TEX.N) announced a hostile bid for Demag Cranes (D9CGn.DE) on Monday, pushing shares of its German rival past the offer price as investors anticipated a bidding war. Terex took its offer directly to shareholders after talks with Demag failed to secure a deal. Terex said it would pay 41.75 euros per share in cash, valuing its bid at 884 million euros ($1.31 billion). The offer represents a 15 percent premium to Demag's closing price on Friday. Demag shares rose 22 percent to 44.36 euros on Monday. Terex said it would fund the offer from existing cash and committed debt financing. Buying Demag would give Terex added scale in Europe and emerging markets, especially in China.
Terex Corporation (Terex) is a diversified global equipment manufacturer of a variety of machinery products. Shares of TEX fell by 0.46% or $-0.16/share to $34.62. 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 740659.
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