EANS-Adhoc: Demag Cranes AG / Conclusion of a Business Combination Agreement with Terex / Increase of Offer Price

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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Conclusion of a Business Combination Agreement with Terex / Increase
of Offer Price

16.06.2011

Düsseldorf, 16 June 2011: Terex Industrial Holding AG, Düsseldorf,
Germany, an indirect subsidiary of Terex Corporation, Westport, USA
(together "Terex") has undertaken vis-à-vis Demag Cranes AG, under
certain conditions, to substantially increase the offer price of its
voluntary public tender offer submitted to the shareholders of Demag
Cranes AG on 19 May 2011. The envisaged increase in the offer price
from Euro 41.75 to Euro 45.50 per share is part of a "Business
Combination Agreement" signed today by Terex and Demag Cranes after
the approval by their relevant boards. The agreement ensures broad
operational and strategic autonomy to Demag Cranes even after Terex
has acquired a majority interest in the company. Moreover, the
agreement includes detailed commitments for the period after a
possible integration of Demag Cranes into Terex Group. A complete
evaluation of the improved offer terms will be presented by the
Management Board and Supervisory Board of Demag Cranes AG in a
supplementary statement pursuant to Section 27 of the German
Securities Acquisition and Takeover Act (WpÜG) presumably until 22
June 2011. Pending this opinion, however, the Management Board of
Demag Cranes AG is confident based on today's Business Combination
Agreement that it will in total be able to recommend that the
company's shareholders accept the improved offer.

The Business Combination Agreement will be published on the company's
website at: http://www.demagcranes-ag.de/en/Investor_Relations/Tender
_Offer/index.jsp http://www.demagcranes-ag.de/de/Investor_Relations/U
ebernahmeangebot/index.jsp

Further inquiry note:
Susanne Tengler
Telefon: +49(0)211 7102-1218
E-Mail: Susanne.Tengler@demagcranes-ag.com

end of announcement euro adhoc
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issuer: Demag Cranes AG
Forststrasse 16
D-40597 Düsseldorf
phone: +49(0211) 7102 1218
FAX: +49(0211) 7102 1215
mail: ir@demagcranes-ag.com
WWW: http://www.demagcranes-ag.com
sector: Machine Manufacturing
ISIN: DE000DCAG010
indexes: MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English