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Terex says received higher offer from China's Zoomlion

(Reuters) - U.S. crane maker Terex Corp TEX.N said it had received a higher bid from China's Zoomlion Heavy Industry Science and Technology Co Ltd 000157.SZ to buy the company for $31 per share.

Zoomlion’s offer has been increased to about $3.40 billion from $3.29 billion, based on the company’s total diluted outstanding shares as of Dec. 31, 2015.

Terex shares jumped 8.8 percent to $25.82 in extended trade.

Reuters had reported earlier in the month that Zoomlion had increased its offer to more than $3.4 billion by adding a special dividend for Terex shareholders of $1 per share to its previous $30 per share cash offer made in January.

Terex said on Wednesday its board decided to pursue negotiations to check whether it can obtain a binding proposal from Zoomlion, which provides for a high degree of closing certainty.

Reuters reported in January that a Zoomlion-Terex deal could be blocked by the Committee on Foreign Investment in the United States.

Terex said its board has not changed its recommendation in support of the proposed combination with Finnish rival Konecranes Abp KCR1V.HE.

Until Terex’s existing agreement with Konecranes is terminated, it cannot enter into an agreement with Zoomlion, Terex said in a statement on Wednesday.

Reporting by Radhika Rukmangadhan in Bengaluru; Editing by Shounak Dasgupta

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