Demag recommends increased Terex offer

Terex has increased its offer price for Demag Cranes and the industrial crane manufacturer has recommended that the offer be accepted. The new offer is Euro 45.50 per share, up from Euro 41.75. It remains subject to a 51% acceptance threshold.

Ronald DeFeo, Terex chairman and chief executive officer, said "We are pleased to have reached an agreement with the management of Demag Cranes that provides an excellent basis for the future joint success of Terex and Demag Cranes. Our businesses are highly complementary and the combination has compelling industrial logic for all of our collective stakeholders."

The increased offer price is around a 25% premium on the closing share price of Euro 36.30 on 29 April 2011. It is a "53% premium to the last undisturbed share price prior to the speculation regarding possible takeover interest in Demag Cranes of Euro 29.65" in October 2010.