UPDATE 1-Terex launches $1.3 billion bid for Demag Cranes

Thu May 19, 2011 3:09am EDT

* Terex offers 41.75 euros per share for Demag Cranes

* Offer period runs from May 19 to June 30

* Price is premium to pre-speculation, discount to Wednesday

* Shares up 0.4 percent

(Adds details, background)

FRANKFURT, May 19 (Reuters) - U.S. construction machinery maker Terex Corp (TEX.N) launched its hostile $1.31 billion bid for Germany's Demag Cranes D9CGn.DE.

The company said on Thursday Demag Cranes shareholders would have time until June 30 to accept its 41.75 euro-per-share offer for Demag.

Terex this month took its offer directly to shareholders after talks with Demag failed to secure a deal.

The offer represents a 41 percent premium to Demag's closing price on Oct. 6, 2010, before speculation of a possible offer emerged, but was 10 percent below Wednesday's closing price.

Demag cranes traded 0.4 pct higher at 46.81 euros by 0707 GMT on Thursday. (Reporting by Maria Sheahan)

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