Demag Cranes takeover rumours

12 October 2010

Industrial and port crane manufacturer Demag Cranes Group has issued a statement about takeover plans by competitors, one of which is Konecranes.

According to the Financial Times Deutschland newspaper in Germany, Terex was also considering an attempt to buy Demag.

In response to what Demag described as "highly preliminary and conditional indications of interest from foreign companies," the company statement said, "The Management Board of Demag Cranes AG has examined these unsolicited indications of interest and has reached a unanimous decision with the Supervisory Board that further discussions with the relevant parties are not in the interest of the Company or its stakeholders."

The statement continues as follows:

"Demag Cranes is the world market leader in the field of mobile harbour cranes and one of the leading manufacturers of industrial cranes worldwide. In addition, Demag Cranes is the leading and most profitable service supplier in the industry with its installed based of more than 660,000 electrical cranes and hoists. With its strong Demag and Gottwald brands, a sound capital structure as well as technological and innovative leadership, Demag Cranes, as an autonomous company, is very well-positioned to reap above-average benefits from expected dynamic developments in its industry.

"Demag Cranes is pursuing its own clear standalone strategy, which is based on expanding its business in emerging markets by introducing new product lines and by benefiting from significant growth in the highly profitable service business. The Demag Cranes Group's sound financial position may create opportunities to turn competitors' possible financial problems to its advantage and participate more actively in the process of industry consolidation than in previous years. The emerging markets are expected to be the focus of these potential activities."

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