Chinese Xinmao says drops move on Dutch cable firm
Chinese investment group Xinmao withdrew on Thursday a planned bid of EUR1.0 billion ($1.31 billion) for Dutch cable maker Draka, which has accepted a rival, lower offer from Italian Prysmian.
Given the tender obligations arising from Prysmian's bid of EUR840 million, Xinmao "regretfully concluded that its intended offer for Draka is no longer feasible," the Chinese company said in a statement made available by Draka.
"Prysmian has obtained an irrevocable commitment from Flint Investments, Draka's largest shareholder with 48.48 percent interest, to tender its shares," Xinmao noted.
The Dutch cable maker announced on Wednesday that its board had advised shareholders to accept the Prysmian offer of EUR8.60 per share in cash plus 0.6595 newly issued Prysmian ordinary shares.
Last year, Draka rejected a bid of EUR730 million bid from French competitor Nexans as inadequate.
Draka has about 68 operating companies in 31 countries, employing about 9,400 people.
© 2011 AFP