Terex, Already in a Merger Deal, Gets Buyout Bid From Zoomlion

Terex Corp. said Tuesday it has received an unsolicited buyout bid from Zoomlion Heavy Industry Science and Technology Co. worth about $3.3 billion.

Shares of Terex jumped 51% to $22.67 in afternoon trading as the Chinese company offered to acquire all shares outstanding of Terex for $30 a share in cash.

Terex, a maker of construction cranes and motorized work lifts, had previously entered into an agreement to merge with industrial-crane maker Konecranes PLC. Terex's board said Tuesday it continues to back the deal with Konecranes.

Terex said it has struck a confidentiality agreement with Zoomlion, a Chinese construction equipment manufacturer, and has entered discussions regarding the proposal. Terex said it wouldn't comment further until its board has completed its review.

The all-stock deal with Konecranes, first announced in August, would leave Terex shareholders with 60% of the stock in the new company, which would be known as Konecranes Terex PLC. The company would be incorporated in Finland, where Konecranes is based, but would maintain offices in Westport, Conn., where Terex has its headquarters.

The deal with Konecranes was expected to be completed in the first half of this year. Konecranes, which had sales of €2 billion ($2.7 billion) in 2014, supplies cranes for factories, warehouses and maritime ports.

Terex has been expanding its presence in the factory crane market in recent years, acquiring Germany's Demag Cranes AG in 2011 for about $1.36 billion. But Terex has struggled since the recession to consistently deliver higher sales and profit because of uneven demand for its equipment. The company has revamped its business portfolio by selling equipment lines and cutting costs to counter its end-market weakness.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

January 26, 2016 14:25 ET (19:25 GMT)

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