Demag Cranes AG rejects Terex takeover bid

After making an announcement of its takeover plan at the beginning of May, Terex submitted a voluntary public tender offer of on the 19th with an offer price of €41.75.
The management board released an opinion saying that Demag AG’s current and future value far exceeded the offer.

Demag AG’s financial advisors at Deutsche Bank and Rothschild cited the inadequacy of the share price offered, which was €41.75.

Demag AG anticipates revenue to grow to €1.06bn in the ongoing financial year over the EUR 1.02bn to 1.5bn target of the previous year, and expects growth to continue in the next two fiscal years.

Growth in fiscal 2014/2015 will be driven by the launch of new market product families, the board said in support of its decision.Demag Cranes AG rejects Terex takeover bid

Demag AG’s management and supervisory boards have unanimously rejected an unsolicited bid for the company from Terex, saying the company is worth far more than the €41.75 offer.

After making an announcement of its takeover plan at the beginning of May, Terex submitted a voluntary public tender offer of on the 19th with an offer price of €41.75. Terex had already signaled its interest at the end of July 2010.

The management board released an opinion saying that Demag AG’s current and future value far exceeded the offer.

Demag AG’s financial advisors at Deutsche Bank and Rothschild cited the inadequacy of the share price offered, which was €41.75.

Demag AG anticipates revenue to grow to €1.06bn in the ongoing financial year over the EUR 1.02bn to 1.5bn target of the previous year, and expects growth to continue in the next two fiscal years.

Growth in fiscal 2014/2015 will be driven by the launch of new market product families, the board said in support of its decision.