Terex is being chased by Zoomlion

Konecranes is still pushing for a merger with Terex, despite Terex having received an increased offer from China's Zoomlion Heavy Industry Science and Technology Co to buy the American-based lifting and materials handling solutions company.

Terex, which agreed last year to combine with Finland's Konecranes, has confirmed it will hold talks with Zoomlion after receiving an increased takeover bid from the Chinese suitor.

Zoomlion raised its cash offer to $31 a share, a dollar higher than an unsolicited bid it made in January.

In a statement, Terex notes that its board "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, it adds.

"The Terex Board of Directors has not changed its recommendation in support of the proposed combination with Konecranes. Until such time as Terex's 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," the statement concludes.

Konecranes, meanwhile, has issued a statement stressing that its board "continues to believe that the merger of equals with Terex represents a highly compelling opportunity for both companies and their shareholders".

"Konecranes will continue to pursue the merger of equals with Terex in accordance with the Business Combination Agreement and Plan of Merger between the parties," it adds.

If the Konecranes agreement is broken, the company ending the deal must pay a termination fee of USD$37 million, according to a regulatory filing by Terex.

According to Bloomberg, Zoomlion is China's second-biggest maker of construction equipment by revenue, trailing Sany Heavy Industry Co.