China’s Zoomlion Heavy Industry Science & Technology Company has reportedly increased its offer for Terex Corp to more than US$ 3.4 billion.

As part of its challenge to Terex’s potential merger with Finnish cranes company Konecranes, Zoomlion’s offer now reportedly includes an additional dividend of $ 1 per share for Terex shareholders, increasing its previous $ 30 per share offer to $31 per share.

Sources who wished to remain anonymous said Terex has responded to the new offer from Zoomlion by suggesting a $32.75 per share offer may be required to prompt the termination of the Konecranes agreement.

Terex shares rose by as much as 12% on the news, although it is reported that the company is privately arguing the Konecranes deal would be worth more in the long term than the current Zoomlion offer.

The sources said, however, that Terex shareholders are keen for the company to continue negotiations with the Chinese firm.