French cable manufacturer Nexans announced an agreement with the main shareholder of Netherlands-based cablemaker Draka to make a takeover offer for Draka. Flint Management, Draka's largest shareholder, agreed to tender its shares to Nexands under certain conditions, while Nexans agreed to launch a cash offer of EUR 15 per share for all of Draka. Draka's share rose over 36 percent to just over EUR 15 on 18 October after the bid was announced. The transaction would contribute to the consolidation of the cable sector, improve the competitiveness of Nexans' European asset base and reinforce its positions in specialty cables, the French company said. Nexans said it would maintain a "sound financial structure" after securing financing for the acquisition. The Nexans proposal will be subject to customary conditions, including approval by the Nexans board of directors, recommendation of the offer by the Draka management and supervisory boards, due diligence, a 95 percent acceptance threshold, and regulatory approvals. Nexans intends to begin negotiations with Draka with a view to reaching an agreement as soon as possible. Draka said it had received the Nexans statement and was still reviewing the proposal.
