French cable maker Nexans bids for Draka, hedge funds unhappy
Monday 18 October 2010
French cable maker Nexans has made a €15 a share offer for Dutch cable maker Draka with the support of Draka's owner Flint Beheer.
Flint Beheer is an investment fund owned by the wealthy Fentener van Vlissingen family and controls 43.9% of the MidKap stock.
According to the Financieele Dagblad, hedge fund Lucerne Capital Management has already said the offer is too low and does not do justice to Draka's real value. Analysts also say the bid is low.
Nexan's offer is below Draka's Friday close of €15.31 and values the company at €817m. The paper says Draka's share price has averaged €11.70 over the past 60 days.
If Flint sells its stake the new owner will be required by law to make a bit for the rest of the shares.