- Terex (NYSE:TEX -16.3%) tanks as much as 20%, as Zoomlion's (OTCPK:ZLIOY) terminated takeover bid for the company appears to surprise the market.
- The move clears the way for TEX's planned $1.3B disposal of its Material Handling and Port Solutions segment to Konecranes (OTC:KNCRF), which had wanted a TEX takeover of its own; earlier this month, Konecranes negotiated the purchase of only the segment, the asset which it had always wanted most.
- "After many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS," TEX says.
- Heard On The Street's Abheek Bhattacharya says Zoomlion's sudden withdrawal, combined with Anbang's mysterious end to its bid for Starwood Hotels, might prompt other potential takeover targets to "grill their Chinese suitors on whether they have the cash, or are truly willing to pay the price."