Flashback: announcement of the merger

Observers are closely watching Terex Corp after a takeover bid by China's Zoomlion Heavy Industry Science & Technology Co.

The Chinese suitor is threatening the merger between Terex and Konecranes Oyj with a USD3.3 billion offer that has Terex shares soaring.

Terex has confirmed that Zoomlion offered USD30 in cash for each Terex share.

The offer comes as Terex is working on integrating with Konecranes after announcing a stock swap in August.

According to financial sources, that deal values Terex shares at around USD18 - significantly below the Chinese offer.

The Wall Street Journal reports that the Terex board hasn't backed away from an earlier endorsement of the Konecranes merger, but says Terex has entered discussions with Zoomlion regarding the proposal. Terex has declined to comment further until its board finishes reviewing the new offer.

The report also quotes Konecranes saying it "will continue to pursue the merger of equals with Terex," calling the deal "a highly compelling opportunity for both companies".

The merger arrangements were well on track, with a September update noting Terex had received requisite consents from note-holders.

In October, Terex named John L. Garrison, Jr. as chief executive officer and president in preparation for the merger.

Founded in 1992, Zoomlion is mainly engaged in developing and manufacturing major high-tech equipment in the areas of agricultural, building, energy, environmental and transport engineering. The company's activities fall into 11 major categories with 51 product lines and its offerings include nearly 1,200 leading products.

Hoisting machinery is a major contributor to the company's USD4.2 billion revenues in 2014.

Zoomlion claims to be the largest equipment manufacture company in China and the sixth-largest in the world, employing nearly 30,000 people.