Added by Gary Dunn on October 21, 2010
Terex Corp’s CEO Ron DeFeo has told that he would be willing to put in his company’s books $1.35bn in cash in order to cover the right purchase in the heavy equipment business.
In an interview given to reporters added that they “could use most of it. We have said, and I’ll restate it, that we have been targeting $500 million to $1 billion size deals. But you can’t always fit everything nicely into what you’re targeting.”
Mr. DeFeo had thought that it wasn’t hard to find good-priced targets, and was surprised when his expectations didn’t turn out to be true even though there has been a continued weakness recorded in both North American and Europe.
Ron DeFeo, however, believes that part of the problem with reaching the set targets were actually Terex Corp’s high expectations.
A week ago, Terex Corp manifested an interest in placing a bid for Demag Cranes, which is one of the biggest manufacturers of port and harbor cranes worldwide.
Demag Cranes confirmed that it had received informal offers for takeovers from foreign companies, but said that it was not interested in any deal of such type. Terex entered the cranes market back in 2009, by buying Fantuzzi Industries.