Finnish materials handling group Partek, which includes the brands Hiab, Nelcon, Moffet and Kalmar, has revealed that it is in merger talks with EOT crane and hoist manufacturer KCI Konecranes, also of Finland.
Partek disclosed that it had been in negotations with Konecranes ‘for quite some time’ after Konecranes’ former parent, the lift manufacturer Kone Oyj launched a hostile bid for Partek.
Kone offered to buy the 30.2% stake in Partek that is held by the Finnish government for Euro 15.30 per share and announced its intent to make a conditional cash offer for the rest of the shares in Partek for the same price But Partek president and chief executive Christoffer Taxell said that the offer was not welcome, had no commercial benefits, and undervalued Partek. Kone made no approach to the Partek board before making the offer.
Taxell said that a merger with KCI Konecranes, on the other hand, would ‘strengthen the industrial structure and bring substantial synergies’ and thus had the support of the Partek board.
