June 22 - The management and supervisory boards of Demag Cranes AG has recommended that its shareholders accept a revised takeover offer from Terex Corporation that includes an increased share price offer and safeguards employee jobs, existing sites and D
Talks following Demag's initial rejection of Terex's first bid resulted in an improved offer from EUR41.75 (USD60.1) per share to EUR45.50 (USD65.4).
A Business Combination Agreement signed by both parties guarantees that Demag AG will have independent operating segment status within Terex, pursuing its existing business activities and keeping the responsibility for all strategic and operational planning, including research and development.
Demag Cranes' CEO Aloysius Rauen will represent the firm as part of Terex's executive leadership team.
Demag AG's will continue to headquartered in Düsseldorf, Germany, and a five-year site preservation guarantee has been agreed in respect of Demag Cranes' German production sites Wetter, Düsseldorf, Uslar and Luisenthal.
Terex CEO and chairman Ron DeFeo said: "We are pleased to have reached an agreement with the management of Demag Cranes that provides an excellent basis for the future joint success of Terex and Demag Cranes. Our businesses are highly complementary and the combination has compelling industrial logic for all of our collective stakeholders.
"Demag Cranes products are competitive and innovative. The company is professionally managed, with highly motivated staff, and Terex will draw on this for both Demag Crane's ongoing success and the future of Terex as a whole.
"We look forward to capitalising upon our strengths and working with Demag Cranes' management and employees to continue to grow the business globally."
Demag AG shareholders will have until June 30, 2011 to decide whether or not to accept the revised offer, which will see the Demag and Gottwald brands remain intact.