Dutch cable maker Draka reviewing alternatives to Nexans bid
Dutch cable maker Draka said Thursday that a 730-million-euro takeover offer from French competitor Nexans was inadequate and that it was making "good progress" assessing alternatives.
"We remain of the view that the current proposal from Nexans is not in the interests of our stakeholders and are reviewing our alternatives," Draka chief executive officer Frank Dorjee said in a trading update statement.
"We are making good progress with this review and will keep all of our stakeholders informed of any significant developments."
Nexans announced its takeover bid for Draka last month, saying it had won the conditional support of main shareholder Flint Beheer BV, which owns 48.48 percent of Draka.
Draka ruled the offer "inadequate" and said it was considering alternatives that include a "stand-alone strategy."
The company has some 68 operating companies in 31 countries that employ about 9,400 people.
Draka said Thursday it expected an operating result of 50 to 55 million euros (69 to 76 million dollars), up from 48.3 million euros in 2009.
© 2010 AFP