RER Magazine

SUBSCRIBE NOW!

Newsletters

SUBSCRIBE NOW!

 

Blog

Newsletters

Stay up-to-date on the latest marketing intelligence and opportunities.

RER Reports RER ProductWire
Subscribe

Issue Archive

Event Calendar

The Rental Show– New Orleans, LA
February 6-8, 2012

» More events and information

Social Media

More ways to stay informed...

  

follow us on twitter

Find us on Facebook


Terex Sues Bucyrus for Changes to Terms of Sale

Terex has sued Bucyrus International, accusing it of abusing post-closing adjustments to cut the $1.3 billion acquisition price of Terex’ mining business, Bloomberg has reported. Terex sold the unit to South Milwaukee-based Bucyrus in February for $1 million in cash and 5.8 million shares of stock.

The companies agreed to allow for post-closing adjustments to recognize any changes in the net capital of the mining business during the two months between the signing and closing of the contract, according to Terex’ lawsuit filed Oct. 29 in New York state court in Manhattan.

Bucyrus, a manufacturer of surface mining machinery, abused the adjustments “to launch an unsubstantiated wholesale challenge” to pre-closing accounting and to argue for a $150 million reduction in the net asset value of the unit, according to the lawsuit.

Terex added in its complaint that nothing in the asset purchase agreement allows Bucyrus to audit the base net asset value of the Terex business so it can re-adjust the purchase price. Terex, claiming that Bucyrus is breaching the contract, is asking for a court order for Bucyrus to turn over books and records to Terex, to honor its contract and pay unspecified damages.

Bucyrus officials were not immediately available for comment.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

most recent story

popular articles

Popular Articles

Recent Comments

Stock Block

Buyers Guide

Buyers Guide

The RER Industry Directory is the resource buyers like yourself rely on when looking for up-to-date information on the products or services you are searching for.

Learn More
Sourcebook

Rental Rate Guide

Rental Rate Guide 2012

Want to know how much equipment is renting for these days? Find out in RER's original 2012 Rental Equipment Rate Guide.

Learn MoreAdd to Shopping Cart
Sourcebook