(Reuters) - Terex Corp (TEX.N) received an unsolicited offer from China’s Zoomlion Heavy Industry Science and Technology Co (000157.SZ), the U.S. crane maker confirmed, valuing the company at about $3.28 billion.
Terex shares rose as much as 60 percent to $23.98 in afternoon trading, but remained below Zoomlion’s offer of $30 per share. The non-binding offer represents a 100 percent premium to the stock’s Monday close.
Terex is reviewing the proposal and “will have no further comment until the board has completed its review,” the company said on Tuesday.
The offer value is based on about 109 million Terex shares outstanding as of Oct. 23, 2015.
Bloomberg reported earlier in the day that Terex had received an offer from Zoomlion, which it had rebuffed as it wanted to focus on its planned merger with Finland’s Konecranes Oyj KCR1V.HE.
Terex and Konecranes agreed an all-share merger in August 2015, hoping a combined $10 billion in annual revenue would help them better cope with cooling Chinese and weak European demand.
Terex said its board had not yet changed its recommendation of the proposed combination with Konecranes.
Konecranes did not respond to requests for comment and Zoomlion could not be reached outside regular business hours.
Terex makes cranes and equipment for miners and builders, while Konecranes is more focused on cranes for factories, shipyards and ports.
Zoomlion, which produces and sells construction machinery, generated 25.85 billion yuan ($3.93 billion) in revenue in 2014.
Reporting by Arunima Banerjee in Bengaluru; Editing by Sriraj Kalluvila and Kirti Pandey