08.01.2009

Terex terminates Fantuzzi deal

Terex has told Fantuzzi that it has terminated its plan to acquire the group’s port equipment business.

Terex has not yet issued a statement on the subject but told Fantuzzi on December 15th that it was terminating the deal.

In November Terex informed Fantuzzi that it “believed that a material adverse change may exist with respect to the Fantuzzi business or other grounds existed which may preclude completion of this acquisition”, and requested Fantuzzi to provide it with additional information. See Terex may walk from Fantuzzi deal

In the three weeks or so that followed a series of discussions and negotiations occurred. In an SEC filing just before Christmas Terex said that given the ongoing discussions, it waited to provide formal notice of the termination of the Fantuzzi Agreements in an effort to obtain additional information, in order for the parties to find a possible mutually agreeable resolution.

It also said that as Fantuzzi failed to provide any of the additional information requested and in the absence of any resolution arising out of the negotiations it advised the company that it was terminating the agreements effective immediately due to:

(i) failure to obtain all necessary competition authority approvals without conditions.
(ii) Existence of a material adverse change, and
(iii) Other reasons.

Fantuzzi has advised Terex that it disputes the grounds for termination and is threatening legal action.

The filing ends with the statement that “Discussions between the two parties continues and the final outcome of this matter cannot be determined at this time.”