January 27 - Terex Corporation has received an unsolicited, non-binding acquisition proposal from Zoomlion Heavy Industry Science and Technology to acquire all of its outstanding shares, in what seems like an attempt to override the existing deal between
Chinese based manufacturer Zoomlion has proposed to acquire all of Terex's outstanding shares for USD30 a share, which the Wall Street Journal says would value Terex at USD3.3 billion.
The proposal is conditioned on, among other things, receipt of US and Chinese regulatory approval and Zoomlion shareholder approval.
Terex previously announced that it had entered into an agreement to form an all-share merger of equals with materials handling specialist Konecranes. The Terex board of directors has so far not changed its recommendation of the proposed combination with Konecranes.
However, Terex has entered into a confidentiality agreement with Zoomlion and is in discussions with Zoomlion regarding the proposal.
The company's board of directors, in consultation with its legal and financial advisors, is reviewing the Zoomlion proposal to determine the course of action that it believes is in the best interests of Terex shareholders.
According to international media reports, the chairman of Konecranes has said that the Zoomlion offer is unlikely to go through.
Terex says that it will have no further comment until the board has completed its review.