Zoomlion's offer is a small imporvement of its opening offer of bid $30 per share that it lodged in January. [See our previous report here.]
Terex said that its board still prefers the option of merging with Finnish crane maker Konecranes, which remains on the table, but it was negotiating with Zoomlion anyway. The board is also sounding increasingly warm on the idea of selling to the Chinese.
It said: “The Terex board of directors, in consultation with its legal and financial advisors, has determined to pursue negotiations of definitive terms with Zoomlion to ascertain whether it can obtain a binding proposal from Zoomlion which provides for a high degree of closing certainty. There can be no assurance that a satisfactory proposal can be achieved.
“Until such time as Terex’ existing agreement with Konecranes is terminated, Terex is prohibited from entering into an agreement with Zoomlion. Without agreement from Konecranes, Terex may not terminate its existing agreement unless and until Terex shareholders vote upon, and fail to approve, the Konecranes transaction, or Terex is otherwise entitled to terminate under its agreement with Konecranes.”