Fantuzzi has begun arbitration proceedings against Terex's termination of the deal to purchase the Italian port equipment manufacturer.

The proceedings will dispute the validity and legal basis of the unilateral termination by Terex of the definitive agreement reached in August 2008 (Forkliftaction.com News #374).

Terex announced in January it would not proceed with its planned purchase of the company, telling the US Securities and Exchange Commission (SEC) it had terminated its agreement because of delays in getting final approval and due to "materially adverse changes" (Forkliftaction.com News #393).

Fantuzzi says it is continuing discussions with Terex and hopes to settle the dispute amicably.

The company has revealed it is also negotiating with other potential investors.

Fantuzzi has meanwhile announced a meeting of the company's bondholders on February 24 to seek approval to extend outstanding bond repayments to 31 July 2009. The original instalment was due in July 2008.