NEW YORK (TheStreet) -- Terex (TEX) - Get Report stock is spiking by 17.06% to $17.57 on heavy trading volume this afternoon after reportedly denying a takeover offer from China's Zoomlion Heavy Industry Science and Technology.
The crane and construction-machinery manufacturer has rejected a takeover approach from Zoomlion to focus instead on completing its pending merger with Finnish rival Konecranes, sources told Bloomberg.
Zoomlion remains interested in Terex, but it's unclear whether the company will up its bid, Bloomberg adds.
A potential takeover could face U.S. opposition due to the strategic importance of crane operations on ports, Bloomberg notes.
Zoomlion is China's second-biggest maker of construction equipment by revenue, while Terex has operations in aerial work platforms, construction, cranes, material handling and port solutions and materials processing.
About 3.48 million shares of Terex have been traded so far today, well above the company's average trading volume of roughly 1.2 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a grade of C.
Terex's strengths such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures are tempered by weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income.
You can view the full analysis from the report here: TEX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.