Chinese construction equipment manufacturer Zoomlion has increased its offer for Terex Corp. to more than $3.4 billion, according to a Reuters report, in response to the Westport, Conn.-based company’s request for it to increase its acquisition offer of $30 per share. Zoomlion raised its bid by adding a special dividend for Terex shareholders of $1 per share to its previous $30 per share cash offer.
Terex has responded to the bid, according to sources, by asking for $32.75 per share in cash as incentive to terminate its merger agreement with Finland-based Konecranes, which Terex had agreed to before Zoomlion made its initial unsolicited offer.
Zoomlion’s latest move shows additional interest from Chinese corporations to acquire United States-based assets. Terex has asked Zoomlion to raise its offer because of its belief that synergies with Konecranes in the material handling and ports businesses of the two companies would be worth more in the long term than what Zoomlion had offered.
According to the report, discussions between Terex and Zoomlion have not advanced beyond price. Zoomlion’s banks are still waiting for Terex to provide the access they require for their due diligence.
To read the Reuters story, go to: http://www.reuters.com/article/us-terex-m-a-zoomlion-idUSKCN0WH2AX
