A run on shares in German crane manufacturer Damag is holding back Konecranes and Terex from making a bid.
Despite Demag saying that it would like to stay independent from its rivals, shares in the company were up by almost 1 percent on Friday, reported Reuters. The shares have gained a third in value since Konecranes said earlier this month it was interested in a merger.
Konecranes CEO Pekka Lundmark said the company is not going to make a hostile approach for Demag Cranes as it seeks to merge with its German rival.
The high price is also making it unattractive for alleged suitor and rival Terex to launch hostile bids.
“We are not planning a hostile approach to Demag Cranes and continue to be open and interested in a constructive dialogue with management regarding a possible combination of our two companies,” Lundmark told Reuters in an emailed statement on Friday.
Terex, which is currently sitting on a $1.35 billion cash pile and has previously suggested it is looking for the right acquisition in the heavy equipment business, has declined to comment on Demag specifically.
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