S&P: Terex unchanged

Standard & Poor's said the BB- ratings and stable outlook on Terex Corp. are not immediately affected by news that the company will launch a cash public tender offer for Demag Cranes AG.

Terex's offer equates to a $1.3 billion purchase price for Demag's shares, S&P said.

Demag had about $1.4 billion of sales in 2010 and the agency said it believes the acquisition would complement Terex's existing crane businesses, which generated close to $1.8 billion of sales in 2010.

Terex has indicated that the offer would be financed with $750 million of committed bank term debt and about $600 million in cash, the agency said.

But the company's sizable cash balances and improving operating prospects are offsetting factors in the rating assessment, S&P said.

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