Terex Corp., which previously announced plans to issue about 3.5 million shares of common stock, recently pulled the offering off the market.
Management at the aerial work platform and crane manufacturer said the decline in price for the company's shares after the offering was announced "did not fairly reflect the value of the shares." Shares of the Westport, Conn.-based company increased on the news that it was pulling the offering, closing December 29 at $26.63 per share versus a 52-week high of $31.50.
Proceeds from the offering, which the company acknowledged would have been "mildly dilutive" to 1999 earnings per share, were to be used to pay debt and for general working capital purposes.
"While we have been advised that the offering was fully subscribed, we do not believe that it is in the best interests of our shareholders to issue additional shares at a price that does not reflect their fair value," said chief executive officer Ronald DeFeo. "Management believes that the company has sufficient resources to continue its operating and growth strategies, and [we] expect to access the capital markets as appropriate to enhance growth opportunities."
