Tuesday, January 26, 2016
Shares of Westport’s Terex Corp. jumped almost 37 percent today after the company said it had received an unsolicited takeover offer from a Chinese company.
The maker of cranes and heavy construction equipment said the offer of $30 per share came from China’s Zoomlion Heavy Industry Science and Technology Co.
Terex shares closed at $20.50, up $5.49, or 36.58 percent, after trading as high as $23.98 during the afternoon.
Some Wall Street analysts noted that the stock was trading well below the offer price, indicating doubt that the deal has much chance of happening in its present form.
Terex said it signed a confidentiality agreement with Zoomlion and its board is reviewing the proposal. It said it would not comment further until the review is complete.
Terex said the proposal is conditioned on, among other things, receipt of U.S. and Chinese regulatory approval and Zoomlion shareholder approval.
In August, Terex said it would merge with Finnish company Konecranes PLC in a deal that would have Terex shareholders controlling 60 percent of the new company and Konecranes the rest. (See WestportNow Aug. 11, 2015)
Terex said today that its board had not changed its recommendation to combine with Konecranes.
Wall Street analysts said while there was a large premium with the Chinese offer, Terex shares had traded just under $30 as recently as last May.
Posted 01/26/16 at 05:29 PM Permalink