Draka's 1 bln euro mystery bidder shows "magic" of China

martedì 23 novembre 2010 11:50

* Xinmao founded by a former Chinese air force senior officer

* Mid-sized Chinese company looking abroad for growth

* No information on Draka deal, says listed arm's official

By Shengnan Zhang and Michael Smith

BEIJING/HONG KONG Nov 23 (Reuters) - The surprise 1-billion-euro cash bid that China's Xinmao Group placed made for Dutch cable group Draka highlights the new wave of Chinese companies that are set to pounce on assets up for grabs across the globe.

After years of overseas M&A, China's state-backed oil and financial majors such as CNOOC , Sinopec , ICBC and China Mobile are now recognised across much of the world.

The gatecrash by China's Xinmao Group on an all-European cable industry takeover on Monday shows that lesser known, but just as voracious, Chinese companies are now in on the cross-border growth game -- regardless of whether or not they're a household name in the industry.

Xinmao proposed a $1.4 billion offer for Draka that was well above an agreed bid from Italy's Prysmian , which had just announced it won over Draka, a market leader in cable in China, with its second takeover attempt.

"This is the magic of China," said a Hong Kong-based investment banker, referring to the Xinmao offer, who did not want to be identified due to client sensitivities.   Continua...