Asia Bizz: China’s Tianjin Xinmao S&T Investment Corp. Ltd is reported to have officially dropped the plan to acquire the Dutch Cable manufacturing company, Draka NV. The offer was dropped after the Italian cable manufacturer Prysmian SpA stated that it will be launching its own offer to purchase Draka NV.

Xinmao on the other has said that the Dutch firm will only move towards success if the offer of purchase is launched before the end of the tender period kept forward by Italy’s Prysmian. There is already an irrevocable commitment that Prysmian has got from Flint Investments B.V., who are Draka’s largest shareholders, enjoying interest rates at 48.48%.

Prysmian has said that it is ready to provide EUR8.60 cash and 0.6595 for each share of Draka NV, which already values around €17, this has been committed last year. Xinmao from China was ready to launch around €20 billion or €20.50 per share for the Draka acquisition.

Source: WSJ