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Xinmao bid for Draka not backed by state support: Dutch
December 24, 2010 / 7:37 AM / 7 years ago

Xinmao bid for Draka not backed by state support: Dutch

<p>A welcome sign which reads "together we construct meters" is seen in front of Dutch cablemaker Draka 's factory in Amsterdam November 26, 2010. REUTERS/Michael Kooren</p>

AMSTERDAM (Reuters) - The financial backing offered by Minsheng Bank to China’s Xinmao bid for Dutch cable maker Draka DRAK.AS is based on “commercial reasons” and not state support, the Dutch economy minister said on Friday.

“There is nothing to indicate at the moment that there is more to this than commercial considerations,” economy minister Maxine Verhagen said in written answers to Dutch parliamentary questions.

Verhagen added the ministry will keep a close eye on the interests of the Dutch economy, employees and shareholders, but stressed that the government plays no role in judging a company’s business or economic reasons for launching a bid.

Draka has recommended that its shareholders accept a bid from Italy’s Prsymian (PRY.MI) while Xinmao group is still preparing its formal 1 billion euro ($1.3 billion) offer.

($1=.7626 Euro)

Reporting by Aaron Gray-Block; Editing by Sara Webb

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