French cable maker Nexans says it eyes Dutch Draka

18th October 2010, Comments 0 comments

French cable maker Nexans said on Monday it planned to launch a takeover bid for Draka after having won the conditional support of the main shareholder in its Dutch competitor.

Nexans said it received the preliminary support of Flint Beheer BV, which owns 48.48 percent of Draka, for a bid of 15 euros per share which values the Dutch manufacturer at 730 million euros (1.0 billion dollars).

That price offers a premium of about nine percent on Draka's closing price of 13.72 euros on Wednesday, before the media began to speculate on Flint Beheer's desire to sell its stake.

Shares in Nexans jumped 2.35 percent to 54.38 euros when trading was resumed on the Paris stock market on Monday after a suspension at the opening of the session.

© 2010 AFP

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