31.05.2011

Demag dismisses Terex offer

As predicted Demag Cranes has dismissed the Terex offer and its claims that it can extract more value from the business than the current management can. It hasl therefore advised its shareholders to reject the €41.75 cash offer which closes at the end of June.

Demag chief executive Aloysius Rauen described the Terex offer as "inadequate from a financial point of a view for Demag shareholders and not in the interest of the company."

However while Demag says that its management and supervisory boards unanimously rejected the unsolicited tender offer of €41.75 a share it has added that it would be open to holding talks with the US based group.

Terex chief executive Ron DeFeo has cited the unwillingness of Demag to engage in talks as a reason for launching a hostile offer directly to shareholders, claiming that Demag had repeatedly ‘stonewalled’ attempts to gather information for a more precise offer for Demag.

As part of its rejection announcement Demag also upped its revenue projections for 2011 and said that revenues are likely to increase 83 percent by 2015, while profit levels will quadruple.

"The Offer price does not adequately reflect the current positioning and growth prospects of the Demag Cranes, based on the company's clear and successful strategy, “said Rauen.
See Demag looks set to reject Terex - from earlier today