Exclusive: Terex stops Konecranes merger integration work
By Greg Roumeliotis
(Reuters) - Terex Corp (TEX.N: Quote), the U.S. crane maker that has received a $3.3 billion acquisition offer from China's Zoomlion (000157.SZ: Quote), said on Friday it had halted all work on its integration with Finland's Konecranes Abp KCR1V.HE.
While Terex has made no decision on whether it will abandon its agreed merger with Konecranes, the move is the clearest indication yet that it views a sale to Zoomlion as a realistic alternative despite concerns such a deal could be blocked by the United States on national security concerns.
Terex, a Westport, Connecticut-based crane maker, has 97 so-called priority-rated contracts with the U.S. government that could attract scrutiny from the Committee on Foreign Investment in the United States (CFIUS). It also provides mobile harbor cranes in ports that are seen as a critical part of U.S. infrastructure.
"Given the uncertainties involved with the merger and proposed acquisition (by Zoomlion), the decision was made to halt information sharing, work on integration, and synergies between the businesses, until further clarity can be had on the course of action," Terex said in a statement after Reuters reported on the cessation of integration work, citing sources.
Financial and antitrust filings regarding Terex's merger with Konecranes that are in the works will continue unaffected, Terex added, emphasizing that it had not so far changed its recommendation on the merger with Konecranes.
Zoomlion and Konecranes did not immediately offer comment.
Zoomlion has offered $30 per share in cash for Terex, versus the Konecranes offer of 0.8 share for each Terex share which Terex shareholders stand to receive under the deal that was agreed upon in August.
Terex shares jumped as much as 9 percent after the news of the halt in Konecranes integration work, and were still up 4.2 percent at $23.02 in early afternoon on the New York Stock Exchange on Friday. Konecranes shares ended trading down 5.3 percent at 20.20 euros ($22.5) in Helsinki. Continued...