Terex (TEX) Stock Soars, Konecranes Purchasing Unit
NEW YORK (TheStreet) -- Terex (TEX) - Get Report stock is surging 9.12% to $24.76 in late-morning trading on Monday, as Finland's Konecranes will buy the company's crane business for ports and factories for 1.13 billion euros ($1.28 billion) in cash and shares.
Under the terms of the deal, Terex will receive $820 million in cash and 19.6 million newly issued Konecranes class B shares, making Terex a 25% shareholder.
The transaction ends the companies' planned full merger and enables Terex to pursue talks with rival Zoomlion Heavy Industries Science & Technology. The suitorlaunched a competing bid for Terex last year and later sweetened its offer to $3.4 billion.
"The agreement provides Terex with the ability to continue to pursue discussions with Zoomlion," Terex said in a statement.
If Terex decides to enter into a merger agreement with Zoomlion instead, it will be liable to pay Konecranes a $37 million termination fee.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Terex's strengths such as its solid financial position based on a variety of debt and liquidity measures that we have evaluated are countered by weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
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.
