NEW YORK - Cevian Capital Monday said Terex's offer for Demag cranes was inadequate despite the 15% premium given to its share price the day before and the 40% premium given to the price of Demag Cranes since speculation emerged that the company may be bought out.
Andy Kibbens the CEO of The Markets Are Open said "if this offer is inadequate than Terex won't be buying Demag cranes. I think Cervian Capital is inadequate at determining adequate prices."
Money managers often call offers inadequate when they look to get higher returns for assets that don't deserve it. Andy Kibbens continued "I hope that is the case here or this money manager does not know what he is talking about."
CEO of Terex Ronald Defeo has stated that he won't increase his offer price. Demag stock has ran well above the Terex bid on speculation that companies will make higher bids.
Andyraw says "that is unlikely, all they are doing is lowering the present value of their investment by trading a security above its takeover price and the security will either stagnate for a long time if not taken over, or it will be taken out at the specified price and investors who bought above this price will lose money."
To see the full Terex report click here.
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