WESTPORT, Conn. (AP) -- Machinery products manufacturer Terex Corp. raised its offer for Demag Cranes AG on Thursday by more than 9 percent to $1.38 billion, and said it expects the German company's board will recommend that its shareholders accept it.
Terex's German unit is now offering 45.50 euros ($65.20) per share for Demag, an increase from an earlier offer of 41.75 euros ($59.82) per share.
Terex Industrial Holding said in early May that it planned to make an unsolicited offer for Demag Cranes, and made the offer of 41.75 euros per share, or $1.26 billion, on May 20.
Demag is based in Dusseldorf, and it makes industrial cranes and crane components, harbor cranes and terminal automation technology. Terex said Demag's board will recommend that company shareholders approve the offer. At least 51 percent of Demag shares must be voted in favor of the deal for the sale to go through.
The new bid comes at a premium of 41.4 percent to Demag's closing price on May 20. Terex said it is a premium of 53 percent to the stock's price in early October, before the shares started to appreciate on rumors that Demag might be sold.
Terex's current bid for Demag shares is scheduled to expire on June 30.