- Terex (TEX +5.1%) enjoys strong gains after BofA Merrill Lynch upgrades shares to Buy from Neutral, saying TEX will have “unprecedented financial flexibility” following the divestiture of its material-handling and ports-solutions division to Konecranes.
- BofA says TEX's Konecranes stake is “deeply in the money,” as it is set to receive $770M net cash for segment sale, plus a 25% equity stake in Konecranes worth $680M, or 26% TEX’s current market cap; the firm also sees potential upside on operational synergies if TEX opts to hold the stake.
- The firm also says activist participation may motivate further restructuring at TEX.