Konecranes confirms preliminary approach to Demag Cranes regarding potential strategic options
Following recent press speculation and Demag Cranes AG’s (Demag Cranes) announcement today concerning a potential transaction, Konecranes Plc (Konecranes) confirms that it has approached Demag Cranes on 8 September 2010 to discuss a potential combination of the two companies. This was a preliminary approach and the management of Demag Cranes has responded that Demag Cranes has no interest in engaging in any dialogue regarding such a potential combination. To date there have been no concrete negotiations between the two companies.
As Konecranes has previously stated, we believe there is a need for consolidation in the crane industry, particularly in Europe. Konecranes is continuously evaluating its strategic options in this respect. We believe that a combination of Konecranes and Demag Cranes would follow a convincing industrial logic and would be highly beneficial to both companies and their respective stakeholders. Konecranes is convinced that if Demag Cranes were willing to engage in a dialogue, a structure for a potential business combination could be agreed that would be in the interest of both companies’ stakeholders and also be viable from a regulatory perspective. However, currently there is no certainty that any transaction will materialize.
Konecranes presently does not intend to comment on this matter any further. Any further announcement will be made only if appropriate.
Director, Investor Relations
Analysts and Investors:
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc,
tel. +358 20 427 2050
Mikael Wegmüller, Vice President, Marketing and Communications, Konecranes Plc, tel. +358 20 427 2008
Thomas Knipp / Paul Scott, Brunswick Group, tel. +49 69 2400 5541
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2009, Group sales totalled EUR 1,671 million. The Group has 9,600 employees, in 545 locations in 43 countries. Konecranes is listed on NASDAQ OMX Helsinki Ltd (symbol: KCR1V).
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