NEW YORK (TheStreet) -- Shares of Terex (TEX) - Get Report are down by 18.50% to $19.83 on heavy trading volume early Friday morning, after merger discussions with China's Zoomlion Heavy Industry Science and Technology fell apart.
The two crane makers had been in takeover negotiations since late January, when Zoomlion made a $3.3 billion bid despite Terex's existing merger agreement with Finland-based Konecranes.
Zoomlion and Terex were unable to agree on a price, sources told the Wall Street Journal. Other sources told the Journal that Zoomlion didn't complete financing for the transaction.
Terex will now proceed with its planned $1.3 billion deal to sell part of its cranes business to Konecranes, Terex CEO John Garrison said in a statement.
"We expect this sale to be accretive to Terex's earnings per share," Garrison added. "The proceeds will significantly reduce Terex's debt levels and improve our balance sheet, providing us with the ability to buy back shares and invest in our remaining businesses."
About 3.56 million shares of Terex have been traded so far today vs. the company's average trading volume of 1.62 million shares per day.
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. At the same time, however, we also find 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.