12.10.2010

Terex to bid for Demag Cranes?

Crane, access and telehandler conglomerate Terex has reportedlly retained Goldman Sachs to advise it on a possible bid for German-based industrial, port and overhead crane manufacturer, Demag Cranes.

German daily Financial Times Deutschland reported that Terex was considering a bid for Demag which last week rejected an approach from Finnish Konecranes saying it was “not interested in negotiating a potential transaction”.

Terex has asked Goldman Sachs to evaluate possible next steps which should be clearer by Friday this week. The reports suggest that Terex is considering a stake of less than 30 percent in Demag rather than launching a full takeover bid, although all parties have declined to comment.

Demag Cranes’ shares have jumped almost 25 percent over the past five days, boosting the company's market capitilisation to around €800 million.

Konecranes last week urged Demag to reconsider its rejection of consolidation talks, saying a merger would be highly beneficial to the two crane makers and that some market consolidation was required.