Mick McGuire’s Marcato Capital Management Reveals New Stake in Terex Corp (TEX)

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Richard McGuire‘s Marcato Capital Management has revealed its latest investment in a recent filing with the Securities and Exchange Commission. The fund has acquired nearly 5.52 million shares of Terex Corp (NYSE:TEX), which represent approximately 5.1% of its outstanding stock. The fund revealed it has already had discussion with Terex regarding ways to increase shareholder value and plans to continue collaborating with the management of the company.

Crane manufacturer Terex Corp (NYSE:TEX) has been looking to sell itself for the past 12 month. In August 2015, the company reached an all-stock merger deal with Finland’s Konecranes Oyj, which was later put on hold when China’s Zoomlion Heavy Industry Science & Technology Co offered to buy Terex for $3.4 billion in cash. The takeover did not materialize, however, as Terex executives complained they had not received a proper proposal after months of negotiations.

After Terex imposed a deadline, Zoomlion withdrew its offer. Terex went back to Konecranes Oyj’s proposal but agreed to sell only its maritime port cranes and factory cranes divisions for $1.3 billion. The company has also agreed to sell its construction equipment business in Germany for $60 million to Japan’s Yanmar Holdings.

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Hedge fund interest towards Terex Corp (NYSE:TEX) skyrocketed during the first quarter, as the number of long hedge fund positions doubled to 38 at the end of March. Together these funds held 18% of the company’s common stock. Richard S. Pzena‘s fund, Pzena Investment Management, held a little over 4.8 million shares, the largest stake among the funds followed by Insider Monkey. Billionaire Steve Cohen made a huge addition to his bet on Terex, as his family office Point72 Asset Management held more than 2 million shares at the end of the first quarter.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Marcato Capital Management 0 5,517,382 0 5,517,382 5,517,382 5.1%
Richard T. McGuire III 0 5,517,382 0 5,517,382 5,517,382 5.1%
Marcato 0 1,485,279 0 1,485,279 1,485,279 1.4%
Marcato II 0 136,280 0 136,280 136,280 0.1%
Marcato International Master Fund, Ltd 0 3,895,823 0 3,895,823 3,895,823 3.6%

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Page 1 of 14 – SEC Filing

(Amendment No. __)*
Terex Corporation
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
(CUSIP Number)

 Richard T. McGuire III

Marcato Capital Management LP

Four Embarcadero Center, Suite 2100

San Francisco, CA 94111

Telephone Number (415) 796-6350

(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
July 27, 2016
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. ☐
Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See Rule 13d-7 for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other  provisions of the Act  (however, see the Notes).

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