Demag Cranes says Terex must raise its bid
German crane company Demag Cranes advised shareholders Tuesday to reject a public offer by US rival Terex because the bid price was deemed too low.
The Terex offer of 41.75 euros ($60.00) per share valued Demag at 884 million euros ($1.27 billion), which a Demag statement said was "not appropriate from a financial point of view."
The German group also raised its full-year forecast slightly and now expects sales of around 1.06 billion euros, compared with a previous range of 1.02-1.05 billion.
Demag shares changed hands for 45.85 euros in afternoon trading on the Frankfurt stock exchange, for a gain of 0.66 percent.
The mid-cap MDax index on which they are listed was 1.38 percent higher overall.
The Terex offer was launched on May 19 and runs until June 30. The US company is seeking to acquire at least 51 percent of Temag's shares.
© 2011 AFP