Nexans Could Be Next?

It would appear that the cable area is something of a live wire at the moment in terms of both newsflow and M&A. This is said particulary in the wake of the Prysmian – General Cable deal, and the way that the EU anti-trust (anti-business / anticapitalism) brigade have set a date of May 8 by which time we shall know whether the $3bn affair will go through. In the meantime it could be that some opportunistic buying in the sector takes place, with Nexans of France allegedly being in the sights of one of the private equity giants. KKR is particularly in the frame.

nexanspic

Like the best M&A situations, this looks to be one where the sector is in play fundamentally anyway, so even if there is no deal traders should be underpinned. In the case of Nexans, the shakeout after the CEO walked last month provides a decent underpinning of the downside.

Disclaimer

Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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