Terex has informed the US Securities and Exchange Commission that it has cancelled its agreement to purchase Fantuzzi group
The latest development follows Terex's statement towards the end of last November that it was reconsidering its E215M agreement of August 2008 to buy the Fantuzzi group (http://www.worldcargonews.com/htm/w20081126.434347.htm).
On 19 December Terex Corporation informed the SEC that it was terminating the Fantuzzi agreements "effective immediately."
Terex cited failure to obtain all necessary competition authority approvals without conditions, existence of a material adverse change, and “other reasons.”
According to Terex, after it informed Fantuzzi [in November] of its belief that a material adverse change existed, a series of discussions and negotiations with Fantuzzi occurred, but “Fantuzzi failed to provide Terex with any of the additional information requested and no resolution was reached by the parties.”
Fantuzzi, which was notified of Terex’s decision on 15 December, stated that it disputes the grounds for termination and has threatened to commence legal action.
"Discussions between the parties continue and the final outcome of this matter cannot be determined at this time,” Terex told the SEC.
It is hoped to report any short-term developments in the January 2009 edition of WorldCargoNews.
