WESTPORT, Conn. (AP) — Machinery products manufacturer Terex Industrial Holding AG, the German subsidiary of Terex Corp., has made a previously announced unsolicited bid for all the outstanding shares of a Dusseldorf-based crane manufacturer, Demag Cranes AG.
Terex said Thursday that it is offering Demag shareholders a price of 41.75 euros ($59.74) in cash, as it said May 2 that it planned to do. With 21.2 million shares outstanding, the offer values Demag at $1.26 billion, which Terex said is a premium of 19 percent over the volume-weighted three-month average share price before the original announcement. The shares soared 24 percent May 2.
The offer price is 9 percent below the stock's closing price Thursday of 46.10 euros. The shares fell 30 cents euro to 45.80 by midday Friday.
Terex shares closed down 37 cents at $29.27 on Thursday and fell another 15 cents by midday Friday.
The offer period started Thursday and has been set to end on June 30. It is subject to the condition of a minimum acceptance level of not less than 51 percent of all Demag shares outstanding.
Commerzbank AG will act as settlement agent.
Terex makes heavy equipment for construction, mining, shipping, refining, and other industries.
Demag Cranes makes industrial cranes and crane components, harbor cranes and terminal automation technology.
A company spokesman did not return a call seeking comment.