Demag Cranes AG rose the most in almost two years in Frankfurt trading after the Financial Times Deutschland reported Finnish competitor Konecranes Oyj is considering a takeover of the German maker of harbor cranes.
Demag gained as much as 3.75 euros, or 13 percent, to 33.40 euros, the biggest intraday jump since Oct. 30, 2008, and was up 11 percent as of 10:55 a.m. Miikka Kinnunen, Konecranes’ investor relations head, declined to comment on the report while saying his company is “actively pursuing” acquisitions.
Konecranes, the world’s largest supplier of industrial cranes, has added six smaller service providers this year and has historically made about 10 acquisitions annually, Kinnunen said today in a phone interview from company headquarters in Hyvinkaa. Konecranes can spend “hundreds of millions of euros” on acquisitions, Boersen-Zeitung cited Chief Executive Officer Pekka Lundmark as saying in an article published yesterday.
Demag Cranes has a market value of about 700 million euros ($979 million). The company, which sold stock to the public in 2006, has no controlling shareholder. Before today, Demag shares had gained 27 percent this year.
Sales at Dusseldorf-based Demag in the year through September 2009 totaled 1.05 billion euros, with 52 percent of revenue coming from industrial cranes, 28 percent from services and 19 percent from port technology.
Konecranes has typically made acquisitions of companies with annual sales “in the low single-digit” billion-euro range, Kinnunen said. Acquisition strategy is focused on equipment makers in emerging markets and service providers in developed countries, he said.
Speculation about a possible takeover by Konecranes surfaced last year, when the Finnish company said conditions offered “new interesting M&A opportunities” and that it would ask shareholders to approve possible share sales and repurchases at an extraordinary general meeting. Lundmark said at the time that the measure wasn’t for specific targets.
Konecranes rose as much as 37 cents, or 1.4 percent, to 26.77 euros and was up 0.3 percent in Helsinki trading. The stock has gained 39 percent this year.
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