A spokesman for Terex told Cranes Today: “We have been asked by the SEC to provide information regarding certain transactions between Terex and URI. But we will not make any comments concerning this investigation.”
The SEC is also investigating Terex’s accounts. The company had previously admitted that its financial statements for the years ending December 31, 2000, 2001, 2002, and 2003 contained mistakes, and could not be relied upon.
The company has removed documents making reference to these financial statements from its website. It concluded: “When restated financial information becomes available, Terex will post these materials promptly on this website.”
Each year the SEC brings up to 500 civil enforcement actions against individuals and companies that break the security laws. Typical infractions include insider trading, accounting fraud and providing false or misleading information about securities and the companies that issue them.
There is currently no evidence to suggest that Terex is guilty of any of these infractions. It is not clear what the details of the subpoena issued by the SEC to Terex are, but the company is expected to co-operate fully with investigations.
URI was founded in 1997, and claims to be the largest equipment rental company in the world, with 730 rental locations in the US, Canada, and Mexico. The company recently sacked its president and chief financial officer, John Milne, for not answering the board’s questions about accounting matters that prompted the SEC probe.
Terex chief executive officer Ron Defoe recently resigned from the board of URI.
